Paddy Power Buys Major Stake in Sportsbet

Tuesday 16 February, 2010 18:36

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Paddy Power, the Dublin listed sports betting group with a powerful presence in the UK and European gambling markets, has announced a major acquisition of Australian betting group, Sportsbet.

The purchase of 9.8% of Sportsbet shares from Nambawan Capital, a group with no executive involvement in the firm, brings Paddy Power's interest in Sportsbet to 60%

Last year, Paddy Power purchased 51% of Sportsbet and paid €27.2 million.

However, a unique clause in the deal could see Paddy Power paying up to € 32.8 million.

The latest deal has seen Paddy Power pay Nambawan a further €8.2 million for nearly 10% of the company.

Paddy Power seems keen to take over the entire Sportsbet over time, it was learned, as a clause has been inserted in the latest deal giving the Irish group an option to buy the remaining 39.2% for five to seven times Sportbets' annual earnings.

Sportsbet, the leading Northern Territory licensed betting group, accepts wagers on Australian and international horse, harness and greyhound racing, as well as local and international sporting and novelty events.

A wide range of bets are offered, including City Best, Country Best, Fixed Odds and Top Fluc, offering players a good choice all around.

Paddy Power's purchase of Sportsbet is in line with its strategy to expand out of the UK borders and into international waters.

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