Sportingbet looking to buy out Centrebet

[Westsider]

http://www.adelaidenow.com.au/news/brea ... 6054053564

INTERNET-based gambling firm Centrebet International Ltd says London-listed online gaming company Sportingbet Plc is proposing a takeover bid for the company.

Centrebet said today it was in advanced talks with Sportingbet to acquire all of its outstanding ordinary shares and performance rights at, or around, $2.00 each.

The proposal values Centrebet at $183 million.

Sportingbet currently does not hold any stake in Centrebet.

"It is important to note that no agreement has been reached and the proposal remains subject to a number of conditions, including a successful equity fundraising by Sportingbet," Centrebet said in a statement.

"Given the nature and stage of discussions, including the conditionality associated with the proposal, the Centrebet board does not consider it appropriate or in the best interests of Centrebet securityholders to provide any further details concerning the proposal at this stage.

"The directors wish to caution the market that there can be no assurance given by Centrebet that the present discussions will result in any formal proposal being made to the securityholders of Centrebet."

Centrebet shares had gained 18.5 cents, or 11.64 per cent, to $1.775 by 1423 AEST .

The company has said it was exploring consolidation opportunities and facilitating talks with prospective parties to determine whether a proposal could be developed and put to the company's shareholders.

Centrebet also said today that it and Sportingbet were considering options to preserve Centrebet shareholders' interest in any net benefit in connection with Centrebet's GST claim against the Australian Taxation Office (ATO).

In its 2010 annual report, Centrebet said it would be challenging an unfavourable ATO ruling made in September last year in relation to the calculation of global GST paid from April 1, 2006 to March 2010.

Centrebet had said that while it was not possible to determine the likelihood of success or timing of resolution of the matter, there was a potential receivable of $90.7 million.

[bayman]

no wonder centrebet never knock back or decrease a bet.....even took 10 large off a fellow poster a couple of years back

[mal]

Both sporting conglomerates offer unique betting products
If there is a takeover, I hope there are not any significant changes in each others products