Online gaming and financial trading giant Playtech PLC (LON:PTEC) has made the first purchases of its own shares in the open market, following its announcement earlier this week that the company will buy back up to €50 million (USD $54 million) of its own shares in the coming weeks through to December 31, 2016.
Playtech bought 780,000 PTEC shares on December 6 at an average price of £8.08, and 320,000 more shares on December 7 at £8.02, for a total outlay of £8.9 million, or about €10.4 million out of the maximum €50 million Playtech said it will buy before year end.
Application will be made by Playtech for the repurchased shares to be cancelled. The company holds no shares in treasury.
Playtech initiated the buyback plan after its shares dropped around 10% last week, following news that controlling shareholder Teddy Sagi was selling £329 million (USD $411 million) Playtech shares, more than one-third of his stake in the company, at a significant discount to market.
PTEC shares took another 4% dip earlier this week, following UK financial regulator FCA’s announcement of tighter rules governing Forex and CFD trading. Playtech’s Financials division runs FX brokerage businesses operating and licensed in both Cyprus (Markets.com) and the UK (CFH Group).