Activist investor buying up Playtech shares

Aggressive activist investor Jason Ader has reportedly been buying up large tranches of Playtech plc shares through his New York-based Springowl Asset Management company, triggering market speculation on his motives.

Early reports are that over recent weeks over $100 million has been spent buying up shares and increasing Ader’s stake in the company to almost 5 percent.

The timing is interesting, given that Playtech’s business performance has been unusually below par recently, with management last week reporting a 38 percent plunge in adjusted net profit following reverses in the competitive Asian market (see previous reports).

The company’s share price has declined by almost 50 percent over the last year following two profit warnings from management.

Ader has been straightforward in voicing criticism of the manner in which the company is being managed, telling The Times newspaper that there is a need for improvement in not just the share price, but in governance and reputation.

And he has taken up his issues with the board of directors in discussions around his concerns and the perceived need for dumping unproductive assets, or even selling the company itself.

The Times has also noted that Playtech founder Teddy Sagi has sold off a substantial portion of his stake in the company and now holds just 6.3 percent of the equity.

Playtech has remained non-committal on the report, with a spokesperson batting away enquiries with a bland  “We continually engage with our shareholders and value their feedback” response.

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