In March 2012, "Forbes" belatedly recognized that Teddy Sagi was a billionaire, and estimated his fortune at $1.2 billion. What "Forbes" reported, "Globes" had been saying for some time, but as time goes on, it seems that he remains underestimated, as the assets and liquidity of the 40-year old are steadily growing.
Today's announcement by Playtech Cyprus Ltd. (AIM:PTEC) provides further proof. It will acquire from Sagi social network gaming operations for €95 million ($145 million) and space in a London office building for ₤10.5 million ($17 million). In the blink of an eye, Sagi's bank account has been augmented by NIS 500 million, possibly making him one of Israel's most liquid rich men.
Sagi owns 48.3% of Playtech, which has a market cap of ₤1 billion ($1.6 billion). He sold shares worth almost $300 million as part of the company's IPO. He subsequently sold private companies to Playtech for $500 million altogether, making at least $1.6 billion from the company - and that is not all.
Sagi owns real estate in Israel and other countries, including a hotel chain in Germany, and an online foreign exchange trading company. In other words, his fortune is closer to $2 billion than the $1.2 billion mentioned by "Forbes".
Playtech's share price fell 2.9% to ₤3.40 today, which might be attributable to investors' displeasure at the company's latest parties at interest deals that personally benefit Sagi. This is not the first time that the company has bought assets from Sagi - "Globes" counts at least four - and in the UK, in contrast to Israel, parties at interest deals are not really cricket. British investors are suspicious of them, and in the not-to-distant past some Playtech shareholders verbally expressed their displeasure at these deals. It does not help that Playtech's general shareholders meeting approved them, which will likely be the case for the deals announced today.
Published by Globes [online], Israel business news - www.globes-online.com - on April 17, 2012
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