Boss Mulls GEMed Takeover Offer
GEMed, a jointly-owned subsidiary of Gtech and Swedish investment firm Medstroms, has made an offer to acquire Boss Media.
The deal, valued at SEK 19.00 per share ($2.98), puts Boss' current value at an estimated SEK 1.08 billion. Medstroms is one of the original founders of Boss Media and remains its largest shareholder with a 12.5 percent stake.
In a prepared statement, Boss indicated that near the end of 2007 it was approached by "a number" of suitors interested in discussing an acquisition.
In response, Boss retained an adviser, HDR Partners, and granted the suitors access to conduct limited due diligence.
Boss has until Feb. 27 to accept the offer.
Gtech said it planned to make acquisitions that would complement and enhance the execution of its growth strategy. In July 2007, it acquired sports betting technology group Finsoft.
Currently, Boss Media supplies poker software to Svenska Spel, Sweden's gambling monopoly, and is working to implement a similar service with Austrian state-owned casino group Casinos Austria.
"When combined with Gtech, Boss Media will be afforded access to World Lottery Association customers in all parts of the world, which we believe will facilitate a faster roll-out of Boss Media's products and services on a global scale," said Medstroms Chief Financial Officer Jan Westholm.
32Red 'Cash-Generative' following BetDirect Sale
Nearly a year after 32Red reported a full-year pre-tax loss of £3.7 million and a canceled dividend, the London-listed company said it is looking toward being back in the black.
Following the sale of its lossy BetDirect business to Stan James in October, 32Red Chief Executive Ed Ware remarked that the group returned immediately to a "cash-generative position." The £5.75 million sale of BetDirect to Stan James was wrapped up on Dec. 10, 2007.
32Red's business for the year ending Dec. 31 was bolstered primarily by its strong performance in casino, it said, with gross win for its casino arm totaling roughly £9 million, up 7.6 percent against figures from the previous year. The group reported that new casino players were also up 26.6 percent to 18,992, compared to 2006.
As for the expansion of its casino business, the company said it would launch a French-language casino service "as the first of a number of entries into targeted European territories."
The company also announced its imminent entrance into the bingo market with branded Web site 32RedBingo.com. The site is due to launch in early February and will initially target the United Kingdom.
Regarding the possibility of Asian expansion, 32Red said it "continues to actively investigate commercial opportunities in this region and will provide an update in due course."
The company said that it was "pleased" with current trading, adding that it has seen "strong growth" in its casino and poker businesses over 2007.
"The launch of new products and new language services herald the start of 32Red's next phase of growth," Ware said.
Garber Sees Industry M&A beyond the DOJ
As ever the subject of discussion, the U.S. Justice Department's negotiations with London-listed PartyGaming remained a salient issue today among investors, analysts and the media as the group unveiled KPIs for the fourth quarter.
"We feel that discussions are going well, we feel that they will end well, and I would be extremely surprised and disappointed if they didn't end in 2008," remarked Party Chief Executive Mitch Garber during a conference call with analysts and investors this morning.
On the back of a 52 percent jump in revenue against Q4 2006, as well as a 156 percent bump in casino revenue compared to the same period, Party shares shed 2.50p, or 8.77 percent, to close at 26.00.
Garber said that uncertainty in the eyes of shareholders, especially concerning Party's negotiations with the DOJ, has put "a downward pressure" on stock value, and that the effects -- the resultant stubbornness in share gains -- would be "something we'll have to live with in the near-term."
"It would be surprising to me," Garber said, "if we came to an acceptable, reasonable deal with the DOJ, if the stock did not react favorably to the fact that the company has been so responsible in so many jurisdictions -- including the United States -- and that it put the United States legacy issue behind it."
But what of the current share price, down an estimated 75 percent against its closing price of 107p on Sept. 29, 2006?
"In my view, we're getting mostly fair value for where we're at today," Garber said, "with a discount to the Department of Justice negotiations -- which, in my view, if I had to be perfectly frank, I think it's acceptable to have that discount pending the outcome of the DOJ negotiations."
On a brighter note, the company indicated that during the first four weeks of January, average gross daily poker revenue totaled $1.02 million, exceeding the $1 million-mark for the first time since the UIGEA was enacted in October 2006.
Looking beyond its negotiations with the DOJ, Garber suggested that it would be "natural" to consider PartyGaming an attractive consolidation target, but stressed that the company had neither firm nor imminent plans to become one.
He suggested moreover that once the "DOJ situation" was cleared away from Party and other major firms like 888, an "active M&A environment" would very likely emerge.
"I think it's a natural thought that a company that has no skeletons, that has no legacy issues, that has been run properly and professionally, should be seen as part of a consolidation dance," said Garber.
"Whether it ends in consolidation or not, I think that, quite frankly, we're the prettiest girl at the dance."
Click here to view fourth-quarter KPIs from PartyGaming.
Harrah's Bids Welcome to Private Sector
The world's largest casino group is now officially the world's largest private casino group.
Harrah's Entertainment Inc., parent company of the World Series of Poker brand, said Monday that its $17.1 billion acquisition closed as scheduled.
Harrah's shareholders received $90 per share.
The company has made public several times over that its "ownership will change, but not its direction."
Private equity firms Apollo Management and Texas Pacific Group said in December that they, as the new ownership group, would carry on with the $4 billion in expansion plans Harrah's already had in the works.
As for the arrangement of the board, Harrah's Chief Executive Gary Loveman will retain his position as board chairman, with the remaining eight seats to be split between Apollo and Texas Pacific.
Regarding its ties to Internet gambling, the company in November made an unsuccessful run at Rank Group. Rumors -- roughly four years' worth -- also persist that the group will finally go ahead with a Europe-focused Internet offering.
New Suitor, New Bid
A new and unidentified suitor has outbid investment group PEIC Acquisition in what's become a two-horse race for Parlay Entertainment. The latest proposal suggests an acquisition price of between CDN $1.00 and CDN $1.20 cash for each common share of Parlay, topping PEIC's suggested price of CDN $0.95 per share. Parlay said this morning that the exclusivity period as outlined in its non-binding letter of intent with PEIC expires at 5:30 p.m., EST, adding that no agreement with either party had reached.
Rank Considering Pension Fund Sale
Rank is reportedly discussing the sale of its £700 million pension fund to Goldman Sachs. The Telegraph reported last week that according to anonymous sources with knowledge of the deal, the two companies are in final discussions and the deal is close to being announced.
Tough Year for Lasseters
Online casino group Lasseters has reported an unaudited half-yearly loss of $A1.9 million on complications resulting from its U.S. withdrawal and subsequent increased marketing and operational costs for its online sportsbook.
Full-Year Financials from GGT
Global Gaming Technologies said its full-year pre-tax loss had narrowed versus 2006, but said that its trading facility on the London Stock Exchange's Alternative Investment Market will be suspended if it fails to make an acquisition within 12 months of its annual general meeting. GGT's pre-tax loss came in at £878,247 compared with a loss of of £12.77 million after a share-based payments charge of £614,059 and the goodwill write-off of £100,000. Regarding acquisitions, the company said the process of sourcing a potential acquisition has continued; however, to date, it has not identified a business that meets its requirements.
Stakebuilding Continues
Asia-based investment group Guoco has upped its stake once again in Rank from 4.1 percent to 5.05 percent. Shares in Rank on Friday were up 1.50p to 91.75 on the LSE.