LeapRate has learned from senior sources at leading retail Forex broker AvaTrade, as well as Ava’s ownership group, that recent rumors regarding the company’s pending sale to Teddy Sagi’s PlayTech PLC (LON: PTEC) or other Sagi owned entities which includes recently acquired AvaTrade competitor Markets.com (Safecap Investments Ltd) ” …are totally untrue.”
Apparently, the only correct information among the rumors circulating is indeed that AvaTrade is in a strong financial position and has had an excellent start to the 2015 fiscal year.
The Reuters news circulating this morning in fact contains incorrect information. It claims that the purchase of AvaTrade “exercises an option held a month ago when Sagi’s PlayTech merged his interest of Markets.com into his publicly traded online company PlayTech…” The basis of the Reuters article makes no sense in reality.
PlayTech buying Markets.com was a deal between two Teddy Sagi controlled companies, where he essentially folded ownership of his online trading business, Safecap Investments Ltd which included Markets.com and TopOption.com into publicly traded PlayTech. However, AvaTrade which is majority owned by its two co-founders Emanuel Kronitz and Negev Nosatzki has no ownership or connection to any of these companies.
Reuters’ mistake likely stems from a PlayTech/Markets.com acquisition circular, where mention was made of an option Markets.com has to acquire another unnamed Forex broker. However, that broker is not AvaTrade.
Sources close to the situation have told LeapRate that these untrue rumors began circulating likely by an online blog looking to create readership. Or, possibly to serve someone’s agenda by “shaking the tree” and making it look like AvaTrade is for sale. The sources further indicated there has been no serious discussion of any kind with Teddy Sagi’s PlayTech, Markets.com or any other entities regarding the sale of AvaTrade.
Stay tuned to LeapRate…