Centrebet Bid 'Significantly Undervalues' Shares, IAS Chairman Says

2 February 2009

Following Centrebet International Ltd.’s bid to acquire a substantial stake in International All Sports Ltd., or IAS, the sought-after company released a statement recommending to shareholders to “take no action.”

In the note, Barry Coulter, chairman of International All Sports, said that Centrebet’s proposal “significantly undervalues the shares of IAS.”

The company’s shareholders were addressed earlier on Monday by Centrebet with a cash offer of 28 cents per share. If Centrebet acquires 90 percent of shares, the company said it will give shareholders an increased cash offer of 33 cents per share.

“Centrebet's cash offer is an extremely attractive opportunity for IAS shareholders,” said Graham J. Kelly, Centrebet's chairman, in the statement. “By accepting the Centrebet offer, IAS shareholders have the opportunity to put an end to their exposure to the inherent risks and uncertainty of holding IAS shares.”

After spending over a year on the market, the Melbourne-based bookmaker withdrew its Australian operations from sale in November due to unsatisfactory offers.

Monday’s announcement made International All Sports shares jump 68 percent to 27 cents.