Authority to repurchase Ordinary Shares

RNS Number : 2288H

Playtech Limited

25 May 2011

 



Playtech Limited

"Playtech" or "the Company"

Authority to repurchase Ordinary Shares  

Playtech Limited, (AIM:PTEC) the international software and content provider to the online and land-based gaming industry, is pleased to announce it has taken authority to make market purchases of up to 24,265,448 of its ordinary shares of no par value, being 10 per cent of the current outstanding ordinary shares.  

The Board has approved this because the Company's directors believe that the recent trading price of the Company's ordinary shares does not reflect their underlying value.  Management remains focused on delivering the Company's strategy and has the financial flexibility to continue to pursue potential acquisitions that meet its investment criteria and drive organic growth.  In the light of this, and given the disconnect between the Board's confidence in the business and the Company's recent share price performance, Playtech intends to utilise this authority, subject to market conditions, to repurchase up to 10 per cent of its own ordinary shares.

The buy-back programme will be conducted, through its brokers Collins Stewart and Deutsche Bank, in accordance with the terms of the general authority to make market purchases of its own shares given to the Company under its articles of association.  Any repurchases will be made in the open market and the price paid for repurchased shares cannot exceed 105% of the Company's average share price over the preceding five trading days.  Any ordinary shares repurchased will not be cancelled, but will be held in treasury.

Playtech may repurchase its ordinary shares subject to availability and market conditions.  Any repurchases of ordinary shares will be announced to the market by 7.30am on the following business day. 

Roger Withers, Chairman commented:

"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."

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For further information contact:

Playtech Ltd Mor Weizer, Chief Executive David Mathewson, Chief Financial Officer Ross Hawley, Director of Investor Relations c/o Pelham Bell Pottinger	[phone]
Collins Stewart Piers Coombs / Bruce Garrow	[phone]
Deutsche Bank Andrew Smith	[phone]
Pelham Bell Pottinger David Rydell / Olly Scott / Guy Scarborough	[phone]

About Playtech

Playtech develops unified software platforms and content for the online and land-based gaming industry. Leading gaming applications include casino, poker, bingo, sports betting, live gaming, casual and fixed odds games. Playtech provides licensees with the tools to maximise cross-selling opportunities, player loyalty and yield, all through the powerful management interface - the IMS. The system's fully integrated, cross-platform capability enables players to access online, broadcast, mobile and server-based gaming terminals, through a single account.

New licensees include existing online operators upgrading or diversifying their offering, land based casino groups, government sponsored entities such as lotteries, and new entrants making their online gaming debut, particularly in newly regulated markets.

Founded in 1999, Playtech has over 1,000 employees located in development centres in five countries, the majority of whom are engaged in research and development of current and future gaming technologies.  www.playtech.com

 

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