'Tis The Season To Be Listing....
Published: Friday, June 03, 2005 Online-Casinos.com
'TIS THE SEASON TO BE LISTING...
VIP Management scheduled for LSE end June
Listings, takeovers and mergers are in the air this year it appears, with VIP
Management, the Curacao-based sportsbook and casino operator now about to make
its debut on the London Stock Exchange following a US $44.5 million reverse
takeover by listed firm Leisure & Gaming.
L&G, which is listed on the LSE's Alternative Investment Market, has agreed
to pay US $35.5 million for the assets of VIP Management Services, which comprises
nine sports betting, casino and poker brands.
The all share deal will see VIP's shareholders take a majority stake in L&G,
with a further US $9 million payable if it meets profit targets over the next
two years. L&G has also raised almost US $10 million in working capital
through a placing of new shares, and analysts predict that the newly combined
firm will soon be on the acquisitions trail.
VIP is debt free and had an operating profit of US $6 million for the year ended
December 2004 from a turnover of US $330.1 million and gross win of US $19.1million.
Founder Alistair Assheton is quoted in the media as saying that he is happy
with the valuation of VIP at six times its historic earnings and said it was
a reflection of his faith in the team behind L&G.
"We could have raised a lot more money elsewhere, but we were not looking
for exit and this deal was by far the most compelling going forward," sais
Assheton, who will take over the role of chief executive of L&G following
the takeover.
L&G’s chief executive is Benjamin Shaw, who was involved in the Betcorp
acquisition of BetWWTS and led the takeover of UK land-based gaming operator
RAL earlier this year.
Shaw said the acquisition of VIP would be the first stage in developing “....a
substantial egaming group through acquisition”.
VIP is a heavily US-focused sportsbook with 84 percent of its 30,000 customer
base coming from the US. 34 percent of its revenues emanate from online casino
operations. The firm expanded into Europe through its BetEuro brand and opened
a UK office last year.
The takeover deal will go before shareholders for approval on June 24, and if
the acquisition is agreed VIP will be acquired and L&G will relist on AIM
on June 28.
