US activist investor Jason Ader calls on Playtech to distance itself from Teddy Sagi. He expressed concerns that the company’s relationship with its founder is restricting shareholder value. He also went on to say that is was harming expansion plans in the US. This report was published in http://www.igamingbusiness.com News.

Sagi, who founded Playtech in 1999, last week reduced his stake in the company to 4.8% after selling off more than 5m shares. Ader claimed the Israeli is still too closely involved with the business.

The Times reports that Ader has written to directors urging them to terminate an agreement signed in 2012. In the agreement Sagi provides advisory services to Playtech until such time as he is no longer a shareholder or either party opts to end the deal.

Ader’s letter is said to reference Sagi’s past. In it he mentions his time in jail for insider trading as a factor that has stunted the company’s growth.

The investor said although Sagi is no longer a related party to the firm, his ongoing relationship with the business is affecting its performance. Over the past year, Playtech’s share price has dropped by almost 50% after being forced to issue two profit warnings. The company is currently valued at around £1.4bn (€1.57bn/$1.79bn).

Last week, the company moved to allay fears overs its performance by saying it was on track to achieve its full-year earnings targets. After posting results that were “consistent with expectations” in Q3 it noted that it had seen its business in Asia show signs of recovery. This was after the significant decline in revenue which prompted a profit warning in July.

In August, it was revealed that Ader’s Spring Owl Asset Management had carried out a series of share purchases. These it is said were worth more than $100m in a move to increase his stake in Playtech to around 5%.

At the time, Ader said the firm needed to “improve its reputation, governance and stock price”. It was also suggested he was keen to challenge corporate governance at Playtech.

Ader previously acquired a 5.02% stake in bwin.party and attempted to have four directors appointed to its board. After resistance from the operator’s then-management team, the parties reached a compromise. Ader’s assocaited Daniel Silver was appointed to the company’s board.

Although Ader confirmed to the Times he had written to the Playtech board, he did not comment on the contents of the letter. Playtech is yet to respond to requests for comment.