The head of Playtech’s sports division is to alter his stock ownership so that it aligns with the fortunes of the enlarged business.
Dr Armin Sagedar owned 10% of Best Gaming Technology (BGT) when it was acquired by Playtech in July 2013 and formed the backbone of the company’s new Playtech BGT Sports (PBS) division.
Under plans outlined by Playtech in an update today, Sagedar, who leads PBS, will see his remaining 10% interest in BGT exchanged for an equivalent interest in PBS. The associated put and call option arrangements will be revised to relate to Sageder's proposed 10% interest in PBS.
Sageder will be rewarded for the incremental growth of the non-BGT business in addition to the BGT standalone business with the amount payable calculated by reference to 7.2 x PBS's 2019 EBITDA less the existing EBITDA of the non-BGT businesses which form part of PBS.
The maximum amount payable pursuant to the revised arrangements will be increased to €95m ($113m), an incremental increase of €35m versus the previously agreed cap.
Playtech said the proposed re-organisation and the associated revised put and call option arrangements are subject to certain conditions including court approvals, and are not expected to become effective until next year.
In a note, analyst Simon French from Cenkos Securities said: “This is sensible piece of tidying up and incentivises the highly regarded Dr Sageder to deliver value for the wider PBS division, and thus Playtech shareholders overall.”
Playtech BGT recently announced the appointment of Lee Drabwell, formerly managing director retail at Ladbrokes, as chief operating officer of its UK and Ireland arm.
Related article: Playtech BGT brings in former Ladbrokes director Drabwell