Centrebet accepts $183m takeover offer

The board and major shareholder of online gambling company Centrebet (ASX:CIL) have endorsed a $183m takeover offer from UK-based Sportingbet

Online gambling company, Centrebet International (ASX:CIL), has accepted an offer to be acquired by London-Listed Sportingbet for around $183 million.

CIL shares grew to a high of $1.960 in Friday's trading on the news, before closing 5.98 per cent higher for the day at $1.950.

Sportingbet has offered $2.00 per share for Centrebet shares, a 26 per cent premium on their trading price on 10 May, the last day before Sportingbet's interest was made public. It is an ebitda multiple of 13.2x broker forecasts for FY11.

The Kafataris family - which collectively own 59.66 per cent of Centrebet - and each director will vote for the proposal if Sportingbet receives its own shareholder approval and satisfies a capital raising condition.

This condition is for Sportingbet to raise enough to fund the transaction through an underwritten share issue and a convertible bond issue.

As well as the cash, Centrebet's current shareholders will be given the rights to 90 per cent of any net proceeds of a litigation claim challenging an ATO order on GST.

Centrebet said if it wins the challenge, it stands to gain up to $90.7 million, with $10.5 million immediately recoverable and the balance applied as a future GST tax credit.

The board has also agreed to unanimously recommend the offer to the remaining shareholders if the conditions are met.

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Tags SportingbetCentrebet International Ltdbusinesstakeover offer

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