Harrah's Sale Gets Nod from NGC
Harrah's announced Dec. 21 that it had received approval from the Nevada Gaming Commission for the proposed $17.7 billion sale of its business to private equity tandem Apollo Management Capital and TPG Capital. Harrah's said in a written statement that the approval follows the Dec. 6 recommendation of the Nevada Gaming Control Board. "Moving forward as a private company after the closing of the transaction, we will continue . . . our further development in international markets and strengthen our competitive position in each of the markets where we operate," said Harrah's Chief Executive Gary Loveman. The deal is expected to close in early 2008. Gary Thompson, a spokesman for the group's World Series of Poker operation, told IGN in November that Harrah's is "taking a very serious look" at launching a Europe-facing Internet offering.
Mixed M&A
The London Times reported in late December that the directors of Betgenius are mulling a sale that could fetch between £50 and £60 million. Managing Director Michael Hornung, the group's majority shareholder, as well as its biz development director Alistair Flutter and directors David Walker and Max Locke would stand to profit substantially. Sources with the paper said that that a strategic review was "in its early stages" and that it would be "some time" before any decisions were made. In other M&A news, Rank Group made headlines in late December on news that private equity group Duke Street Capital was interested in acquiring its Mecca Bingo business. Rank Chief Executive Ian Burke told the Times that the group had received a written proposal from Duke regarding the acquisition. The paper went on to speculate that Rank directors had dismissed the proposal.
Investors Bite on Ladbrokes Buy Reco, Shares Still Trending Down
A buy recommendation from analysts at Dresdner Kleinwort may have helped shares in Ladbrokes Thursday, which were up 5.50p to 321.50. Ladbrokes' share value has lost roughly 30 percent of its value since June 2006, when shares topped out at 462.75p. In a research note to clients this week, the brokerage reduced Ladbrokes target price from 450p to 420 and suggested that its £13 million settlement with Turf TV could have a negative impact on 2008 pre-tax earnings -- a cut of around 4.5 percent, the note said.
Portlandbet Marginalized
After announcing last month that it would be looking to offload its sports betting operation, Marginbet has closed its Portlandbet.com subsidiary and terminated all staff. Gaming Intelligence Group reports that the ASX-listed group made the move in order to focus fully on its new mining interests, and that it has initiated discussions with several its business partners to seek relief from its contract obligations.
Harrah's Thinks Loveman's a Keeper
In Harrah's news, the world's largest land-based casino group said that it extended Gary Loveman's employment agreement, and that he would remain in his role as chief executive after its merger with affiliates of private equity groups TPG Capital and Apollo Management.
Netplay TV Raises £1.14 million via Share Placing
Netplay TV said Dec. 28 that it had raised roughly £1.14 million via a placing of 6.91 million shares at 16.5p per share to fund the expansion of its Live Roulette show into a SuperCasino format and the development of a Bingo show. The London-listed media group also said that the placing proceeds will be used for purpose-built studios for the broadcast of all shows. It added that its issued share capital will increase to about 76.04 million shares following the placing.
Scotsman Sees Playtech as One to Watch
The Scotsman reports Playtech -- due to release its trading update -- has been "tipped to be one of the few success stories of an industry hit hard" by new regulations in the United States and is "expected to close the gap on market leader PartyGaming." Pre-tax profits for the year to the end of December 2007 are expected to total around £33.7 million, the paper says.
Sportingbet Trading Meeting Expectations
Sportingbet said in late December that it was trading in line with market expectations." The strong performance outlined in our recent Q1 results continues as we now move into one of the busiest periods for the group," said acting Chairman Sean O'Connor.