GigaMedia Finalizes 60% Sale to Mangas Gaming

Published Thursday, May 13, 2010 - Online-Casinos.com

According to reports from Hong Kong GigaMedia Limited has announced that it has finalized the sale of a 60 percent interest in its online gambling software business. Mangas Gaming, a leader in European gambling with operations including BetClic, Expekt, and Bet-at-Home, offering sports betting, poker and casino services to over four million registered users in over 25 countries has acquired GigaMedia effective immediately.

Arthur Wang, Chief Executive Officer, for GigaMedia commented, "We are very pleased to join our Everest Poker business with Mangas Gaming to create one of Europe's largest and best gaming platforms," adding, "Together we have the size and scale to claim top market share in the large European Community, providing the highest entertainment value for our players and thereby driving the best investment value for our shareholders."

Mangas Gaming is jointly owned by the Lov Group of the French media entrepreneur Stephane Courbit in partnership with the Societe des Bains de Mer de Monaco, which is controlled by the Principality of Monaco. Mangas has made an initial cash payment of an estimated $100 million USD, followed by a final earn-out payment to be made after the May 2012 valuation depending upon the fair market value of the business at that time. The remaining 40 percent interest will be still be controlled by GigaMedia with a put option to sell all or part to Mangas beginning in 2013. Beginning in 2015, Mangas will have a call option on any remaining shares held by GigaMedia. For both GigaMedia's put option and Mangas's call option, the price will be determined then based upon then fair market value.

Interest has been around the share price of GigaMedia now there is a large cash influence in the company value. The drawn out sale was dragging the company market price down largely due to transition and integration issues related to the sale of the company's gambling software business. 

 

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