Playtech will have to seek approval from FCA for takeover of Plus500, watchdog says

7th Jun 2015 09:49

The Financial Conduct Authority (FCA) confirmed this weekend that Playtech will require clearance for its takeover of financial broker Plus500.The gambling software developer, which announced at the beginning of last week that it was snapping after Plus500 in a £460m deal, says it is confident the transaction will be approved, the Sunday Times reported.The 400p-a-share price tag values troubled Plus500 significantly below what it was worth prior to its recent difficulties, which came after it was ordered to freeze the accounts of the clients of its UK-regulated subsidiary, Plus500UK, amid scructiny from the UK financial watchdog over the systems it has in place to prevent money laundering.Plus500's management team, who supported the deal, have agreed to remain part of the business for the first year after completion.The deal, however, is facing opposition from Play500's biggest shareholder, Odey Asset Management, who described the approach as "an opportunistic bid exploiting current regulatory issues and risks"."In our view, 400p materially undervalues Plus500 and we do not intend to vote in favour of the cash acquisition of Plus500 at this price," it said.