Sportingbet agrees Centrebet buyout terms
Sportingbet will look to raise £130m for the acquisition through the issue of new shares and a convertible bond.
Sportingbet has agreed terms for its acquisition of Australian online bookmaker Centrebet, which it will look to fund by raising £130m through the issue of new shares and a convertible bond.
The acquisition of the entire issued and to be issued share capital of Australian Stock Exchange-listed Centrebet, “advanced discussions” over which were revealed earlier this month, will be made through its Sportingbet Australia subsidiary. Sportingbet will issue 154,761,904 new shares at a price of 42p each and £65m in nominal value of convertible bonds to raise the remaining amount.
Sportingbet chief executive Andrew McIver said the acquisition would make it the leading corporate bookmaker in the “fast-growing” Australian market. “This acquisition is a major step forward for Sportingbet as it accelerates the Group’s strategy of increasing its exposure to regulated markets and of geographic diversification.”
The company said this morning that the acquisition, upon completion, would increase the enlarged group’s proportion of net gaming revenue (NGR) received from regulated markets from approximately 22% to 30%. Regulation in its key markets of Greece and Spain would move this closer to 60%, eGaming Review understands.
Sportingbet will publish a prospectus in connection with the acquisition and share offer tomorrow, and also convene a general meeting to approve the acquisition and “certain matters necessary to implement the proposed fundraising,” it said in a statement to the stock exchange today.
The operator made the announcement as it unveiled a 3% year-on-year fall in NGR for the third quarter ended April 30 of £54.1m, from £55.7m. This was however up 4.8% on a like-for-like basis when the company’s exit from France and Norway was taken into account. EBITDA was up 7% year-on-year from £16.1m to £14.9m.