The deal for Playtech’s acquisition of Plus500 failed due to lack of regulatory approval but the fear that its merger with Ava Trade would fall apart has become a reality.
In light of Playtech’s inability to meet December regulatory deadlines, Ava Trade Ltd. shareholders have now enforced their right to terminate the share purchase agreement with the company.
Playtech announced its plans to acquire the currency trading platform for $105 million earlier this year in an attempt to expand its online trading platform having placed a $5 million non-refundable deposit upon signing the deal. Central Bank of Ireland opposed the deal and now that Plus500 is off the table, Ava Trade shareholders have backed out resulting in the loss of Playtech’s deposit.
In a statement on November 23, 2015, Playtech provided the following update with regard to Ava Trade:
“The Central Bank of Ireland's ("CBI") opposition to the acquisition of Ava Trade, which Playtech announced it was appealing on 6 October 2015, triggered a termination right for the sellers of Ava Trade. Although the sellers have not to date exercised this right, Playtech believes that the termination of the merger agreement with Plus500 increases the risk that the Ava Trade sellers may do so.
“Should the acquisition of Ava Trade not proceed, Playtech will not incur any financial penalties other than forfeiting the previously announced $5m non-refundable deposit already paid by Playtech on the signing of the acquisition.”
Playtech now has no choice but to forfeit its $5 million non-refundable deposit already paid upon the signing of the acquisition agreement, but says it still intends continuing with its appeal against Central Bank of Ireland’s opposition to its purchase of the company.
Playtech Backs Out of Plus500 Deal - Update
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