Leisure & Gaming (LNG) said it has received an indicative offer from CGTV Games, a Dublin-based online casino and slots provider.
LNG said the deal, if completed, could see CGTV acquire its entire issued share capital at no less than 13 pence per share (cash), the price at which the company carried out its most recent placing.
The company added that it has granted CGTV a period of exclusivity up to Oct. 31, 2007, after which it may begin soliciting other offers.
The announcement came this morning as part of LNG's interim report, which revealed that gross profits and EBITDA for its Betshop business had been "severely impacted" by a tough run of sporting results in May and June, notably Milan's victory over Liverpool in the Champion's League final.
Losses of 1.2 million euros and 1.1 million euros for gross profit and EBITDA, respectively, were coupled with a 1.7 million euro decline in turnover against figures from 2006. Net win was also down to 3.6 million euros, from 4.2 million euros during the previous-year period.
On news of the approach, shares in London-listed LNG were up 1.50p, or 15.79 percent, to 11.00.