Breaking: Teddy Sagi Plans to Sell $400m Worth of Playtech Shares

Israeli billionaire Teddy Sagi continues to divest his holdings away from online gaming and trading. The holding company which the founder of Playtech uses to control his holdings, Brickington Trading, is placing 32 million shares on the market.

The block is going to be sold as a secondary market offering and represents about 10.1 percent of the total holdings of Teddy Sagi. With the current holdings of the Israeli billionaire amounting to 17.8 percent, he will retain about 7.7 percent of the company’s float.

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Playtech is trading near all time highs, just below £10 ($12.7) per share. The total value of the offering is about $400 million at today’s market price.

Last November Teddy Sagi sold about 12 percent of the shares of the online gaming and trading giant, pocketing £330 million and exceeding the initial number of shares he planned to sell by 20 percent. The sale was followed in March by another block of £113 million ($138 million at the time) which was offloaded to Boussard & Gavaudan.

Last time the secondary market offering took place, shares of Playtech dropped by close to 7 percent at the market open on the next trading day. After the sale, Teddy Sagi’s firm will be barred from selling additional shares for 180 days.

The special relationship agreement between Teddy Sagi’s company and Playtech will be terminated as the holdings of Brickington Trading fall below the 15 percent threshold. The Israeli billionaire will retain an advisory role for the company, receiving an annual salary of €1 per annum.

Teddy Sagi’s Primary Divestment is Real Estate

Back in 2014, Teddy Sagi pocketed close to $544 million from his sale of 45 million shares of Playtech. The total amount of money he has earned since then exceeds $1 billion and is likely to surpass $1.35 billion, assuming the block sale goes smoothly.

Earlier this year in May, Sagi bought a controlling stake in Tel Aviv-listed company Brack Capital Properties. The company invests in German real estate. The Israeli billionaire already has significant experience in this space, having become the owner of London's Camden Market.

Playtech’s announcement on the secondary market placement today shows that Teddy Sagi and his family are continuing to divest their holdings and are committing to real estate, flexible working hubs and e-commerce.