Fairground Gaming To Go Public In October

Published: Friday, September 30, 2005 Online-Casinos.com

FAIRGROUND GAMING TO GO PUBLIC IN OCTOBER?

Links to Microgaming alleged in investment company

The UK press reported this week that an investment company with links to Internet casino and poker software firm Microgaming is to debut on the London Stock Exchange in October this year with the aim of acquiring a portfolio of online casino gambling sites.

Investment firm Fairground will raise GBP 3.6 million on listing, reportedly to fund the acquisition of a number of online gambling properties powered by respected turnkey provider Microgaming.

British analysts said the company could find difficulty in today's heated merger and acquisition (M&A) market, with vendor expectations running high.

"The key problem in today's market is the valuation gap between the expectations of the acquirer and those of the vendor" Paul Leyland, leisure analyst at Seymour Pierce, said.

The firm's admission statement said it had been formed with the "...specific purpose of taking advantage of expected consolidation within the online gaming sector".

Fairground stressed it had built a "close relationship with Microgaming", and Greg Harris, a technology analyst at Cannacord Capital, said this was its key asset.

Evan Hoff, Fairground's chief executive, was one of the founders of South African marketing firm Forwardslash, which provides marketing and other support to Microgaming's largest casino operator Carmen Media.

Hoff told the UK media it would be looking to acquire "relatively small operators".

But there is speculation in the market Fairground could be used for a reverse merger with a larger online casino operator.

Reverse mergers are effectively a fast-track listing for firms looking to avoid the lengthy admission process.