Playtech's Sagi to float energy company
Software provider's majority shareholder has a 40% stake in Genesis Energy.
Playtech founder Teddy Sagi is preparing to float a second company on the Alternative Investment Market (AIM) with an initial public offering for Genesis Energy planned for the third quarter of this year.
Sagi holds a 40% stake in the gas exploration firm and hopes to raise between US$90m and $120m through the IPO. The company told The Financial Times that the procedures for the listing are “at a preliminary stage.”
Genesis owns a number of oil and natural gas exploration licences in Israel and surrounding offshore territory. The Sunday Times claims unrelated gas discoveries in the region have sparked disputes between Israel and Lebanon in the past making the float a controversial political move.
Sagi originally listing Playtech on London’s Alternative Investment Market (AIM) in 2006 before bringing the software company to the main market in July this year. The stock began trading at 333p a share and sits at 372.5p at the time of writing.
His 48% majority shareholding in Playtech has also courted controversy with the sale of a number of assets to the business in recent years receiving a mixed response from analysts, with Nick Batram of Peel Hunt noting that related-party transactions are a ” … dilemma when considering an investment in Playtech.”
This included PT Turnkey Services (PTTS) which Sagi sold to Playtech in July last year for £240m following its intention to purchase the assets in March 2011. Integration of the holding company for Europartners, one of the largest affiliate programmes in egaming, into Playtech was completed at the end of last year. Sagi also made around £165m from the company’s float six years ago as well as £155m in October 2008 selling Playtech a number of marketing firms as part of its joint venture agreement to form William Hill Online.
At the time of the main market move, Playtech CEO Mor Weizer said: “The company has experienced exceptional growth since the company’s foundation in 1999 and today marks a significant milestone in Playtech’s continued development.”