Following yesterday’s slump in the value its share price caused by the company’s announcement concerning discussions with the Spanish tax authorities, Sportingbet has confirmed that it is making a €17.2m (US$22m) payment in settlement of past tax liabilities.
The company said Tuesday that it has completed self-assessment tax returns and will make a payment of €14m plus surcharges and interest of up to €3.2m for its previous activities in the Spanish market.
Shares in Sportingbet fell by more than 7 per cent on Monday after the company disclosed that it was in talks with the Spanish tax authorities, but failed to give details of its potential tax liability.
The company, along with all other major operators in the Spanish market, has recently learnt that its previous activities in the market are liable to taxation under laws dating from 1966 and 1977, although the laws have previously not been applied to offshore online gaming operators.
In order to meet the tax liability, Sportingbet has completed the sale of 7 per cent convertible bonds due in 2016 totalling £15m. The bonds will be issued on May 25th and will be convertible into ordinary shares at a conversion price of £0.4775.
Sportingbet said that payment of its tax liability “maximises the likelihood of securing a Spanish eGaming licence”, with the issuance of licences scheduled to begin on June 1st. The company added that upon receipt of licence, it would immediately apply to Commercial Court no.10 in Madrid to cancel the current injunction over its Spanish facing business.
No comments:
Post a Comment