Gaming VC has revealed this morning that it is in talks with Sportingbet with regards to acquiring the bookmaker’s Turkish language website business, potentially moving the latter one step closer to being taken over by Ladbrokes.
Trading of shares in the AIM-listed operator was suspended this morning pending publication of a re-admission document, and it confirmed this morning that “exclusive” discussions had begun.
Under AIM regulations, any transaction with regards to the Turkish business would be considered a ‘reverse takeover’.
Sportingbet revealed last month that it was considering the future of its Turkish business “as part of its long-term strategy of increasing the proportion of its business mix derived from regulated markets”.At the time the London-listed bookmaker pledged to conduct a review which it explained “may lead to an exit from this business,” which chief executive Andy McIver (pictured) told eGR accounted for 15% of the company’s NGR.
Sportingbet in May agreed terms for the buyout of Australian bookmaker Centrebet and has also stated its intent to apply for Greek and Spanish licences, seen by analysts as better positioning it for a takeover from London-listed peer Ladbrokes, which first made a “highly preliminary approach” in June.
Analyst James Hollins of Evolution Securities today reiterated his firm’s ‘buy’ stance on Sportingbet shares: “We think the sale of Sportingbet’s Turkish operations will pave the way for a Ladbrokes takeover of the group.”
Hollins added that: “We think the market is consistently failing to ascribe any value to Sportingbet’s Turkish operations and we would regard a sale as beneficial to its EV and subsequent valuation.”
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