Posted 5/25/11 :
Company believes recent trading price of shares does not reflect their underlying value
Online and land gaming software provider Playtech Limited will be embarking on a "buy-back", the company announced this week, representing market purchases of up to 24 265 448 of its own ordinary shares or 10 percent of the company's current outstanding ordinary shares.
The decision has been approved by its Board as its directors believe that the recent trading price of the shares are under-valued.
Once re-purchased, the shares will be held in Treasury and not cancelled, a company spokesman said.
The buy-back programme will be conducted, through its brokers Collins Stewart and Deutsche Bank in the open market. The price paid for the shares cannot exceed 105 percent of the Company's average share price over the preceding five trading days.
Roger Withers, Chairman, Playtech said: "Playtech is a truly world-class business which generates substantial free cash flow. Our recent trading and contract win announcements should not only provide the market with comfort in respect of our existing business but also demonstrate the substantial opportunities that are available to drive future growth.
We expect that the market will recognise the true value of our business. Should the public markets continue to offer an opportunity for us to purchase shares at what the Company believes are compelling valuations, the Board must retain the ability to utilise a portion of our cash resources for the benefit of all of our long-term shareholders."