Hours after the announcement by Playtech that the company has chosen not to further pursue the acquisition deal with Plus500, the company has filed an announcement through the London Stock Exchange (LSE) that the shareholders of AvaTrade have suspended another major deal of the firm.
Back in May Playtech has announced a planned acquisition of Irish company AvaTrade for the sum of $105 million. The second blow to the plans of the gaming company to expand into financial services for retail investors leaves a question mark over the expansion of the firm into trading.
Despite the setback, the company will not be incurring any monetary penalty related to the deal except for forfeiting a previously announced $5m non-refundable deposit when the agreement was signed.
In its announcement the company is stating that it will continue its efforts to appeal the decision made by the Central Bank of Ireland that opposed the acquisition at the beginning of last month.
Shares of Playtech (LON:PTEC) are currently trading about 9 per cent lower, with the closing bell of the London Stock Exchange (LSE) 40 minutes away. The shares of the company barely reacted to the news as the fallout of this deal has apparently already been fully priced in by the market.
Questioning financial regulatory decisions has rarely helped any company in the industry in the past. Despite the approach chosen by Playtech, so far the company has not shared any updates on the progress of the “appeal” with the CIB.