PLAYTECH TO BUY BACK EURO 50 MILLION IN SHARES
Decision reflects group's continued confidence in the growth and prospects of the business and its high cash generation.
The Playtech plc group, which comprises both online gambling and financial services elements, announced Tuesday that it intends to buy back up to Euro 50 million of its shares.
In a statement, the company said that the decision reflects continued confidence in the growth and prospects of the business and its high cash generation, and revealed that it continues to trade in-line with expectations.
The statement also references today's news that the UK Financial Conduct Authority is to tighten control of the "contracts for difference" (spread betting) industry in which it has interests (see story further down), saying that it has always aimed to operate its Financials Division to the highest standards and therefore confirms that the FCA initiative is not expected to have a material impact.
The purpose of the Buyback Program is to reduce the company's share capital by means of purchasing its ordinary shares from time to time using existing cash resources to make market purchases of up to 6,000,000 ordinary shares – within the number of shares permitted by shareholders at the 2016 AGM of the company.
Playtech will work with broker Canaccord Genuity Limited to carry out the re-purchases of shares on the London Stock Exchange within pre-set parameters and in accordance with both the company's general authority to purchase shares and the Market Abuse Regulation 596/2014 ("MAR") and Chapter 12 of the Listing Rules. Any shares repurchased will be cancelled.
The company will make further announcements in due course.