Israeli investor Teddy Sagi will take Camden market-owner and e-commerce business Market Tech (MKT) private after persistent share price underperformance. The billionaire behind FTSE 250 gaming company Playtech (PTEC), has agreed a 188p per share deal for the 29% stake not already owned by LabTech, the investment vehicle owned by Sagi.
That values Market Tech at £892.5m, prompting the share price to soar 27.6% to 186p on Monday. Sagi brought Market Tech to the stock market in 2014 at a 200p float price, initially to AIM and then on the main market of the London Stock Exchange. But the stock has consistently drifted lower, trading at a ‘material and persistent discount to NAV.’
NAV is net asset value, in other words, the value of the property and other assets owned by the company. The share price slumped as low as 116.5p at the beginning of July 2016.
‘This has made accessing capital more expensive for the company and restricted Market Tech's ability to expand,’ the company said in an announcement.
In the year to six months to 30 September 2016, the company generated pre-tax profit of £43m and reported NAV of £824.6m.
The deal has been ratified by independent directors on the board of Market Tech, stating that they believe the offer is ‘fair and reasonable.’
