Centrebet Acquired by Sportingbet

Wednesday 7 September, 2011 19:12

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In May 2011, Sportingbet announced its plans to acquire Centrebet. In August of 2011, the Schemes were approved by Centrebet Shareholders and Performance Rightholders, as well as the Federal Court of Australia. The Schemes have now been implemented and as a result, Centrebet is now a wholly-owned subsidiary of Sbet Australia Pty Limited.

Legalising Sportsbetting

While online gambling is illegal in Australia, online sports betting and the sale of lottery tickets online, is legal. Sports betting is one of the fastest growing gambling markets in Australia. Despite the bans, Australians continue to gamble online with little control by the Government. The Government is now considering reviewing their online gambling policies. By legalizing the industry, the government will have more control over it and will be able to collect substantial revenue.

There is some speculation over whether a major driving force behind this deal is the potential for a newly regulated online gambling market in Australia. Andrew McIver, CEO of Sportingbet announced, "We are delighted to have completed the acquisition of Centrebet which means we are now the leading bookmaker in Australia, a fast growing, regulated market. This transaction highlights the Sportingbet Group's strategy of increasing its proportion of revenue generated from regulated markets and of geographic diversification."

Centrebet's Profit

Centrebet equity was valued at around $AU183 million. Cash consideration is to be paid to shareholders at a $2 premium. GST litigation rights claims and other considerations remain and settled claims will see shareholders better off. It is expected that security-holders will receive a litigation claim rights and a litigation claim unit. This will entitle them to 90 percent of the net proceeds of the GST litigation claim of the company.

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Centrebet in Takeover Talks with Sportingbet

In accordance with Listing Rule 3.16.1, Centrebet announced the resignations of Centrebet directors, Graham Kelly, Con Kafataris, Michael McRitchie, Max Donnelly and George Kafataris, as well as company secretary, Mal Lucas-Smith.

The company has appointed new directors - Michael Sullivan, Anthony Waller, Jim Wilkinson and Andrew McIver, together with new company secretary, Lawrence Chatres. While McRitchie resigned as director of Centrebet, he will continue in his role as Managing Director of Centrebet, according to the terms and conditions of his employment contract.

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