Playtech announces €50m share buyback programme

tech Plc has informed investors that it plans to issue a six million ordinary share buyback programme, representing approximately 1.85% of the company’s equity.

The gaming software development company said the launch of this programme coincides with its “continued confidence in the growth and prospects of the business and its high cash generation”.

Investment bank Canaccord Genuity has been appointed to carry out purchases or shares in accordance with FTSE rules at a value of €50m approximately.

The FTSE-listed gambling technology provider stated that the share sale would not have any impact on potential M&A activity, “with its pipeline remaining healthy”.

In Playtech’s latest corporate statement, the company says: “Playtech aims to operate its financials division at the very highest standards of regulation and therefore confirms that last week’s publication by the Cyprus Securities and Exchange Commission and today’s proposals from the Financial Conduct Authority are not expected to have a material impact on Playtech’s financials division.”

Playtech governance also detailed that it had sufficient cash reserves to be able to buy back the shares should future market pricing offer a “compelling valuation”.

Nonetheless, Playtech plans to release the buyback program in the next coming days, clarifying that shares purchases would be made available until its outlay target is met or 31 December 2016.