E.tec Buys Back Shares from Waterhouse Family

29 November 1999
E.tec is buying out major stockholders Bill and Robbie Waterhouse and their family to the tune of $6 million, according to a Sydney Morning Herald article. The company will buy back 45 million shares for about $4.5 million with $1.5 million tossed in as an anti-compete deal sweetener. The Waterhouse family will probably be offered an options package down the road.

Robbie Waterhouse, a former bookmaker, was banned from bookmaking in Australian racetracks fourteen years ago, following the infamous Fine Cotton horse substitution scandal. Although the family reportedly denies any connection between the sale and the ban, Robbie Waterhouse had already resigned as director and company director to prevent the company facing lengthy delays during the probity process required for companies seeking online gambling licenses.

SMH also reported that e.tec had announced plans to raise $15 million through CIBC World Markets to pay for the buyback and other initiatives.