Tattersall's Proposes to Merge with UNiTAB
Australia's largest lottery operator, Tattersall's Ltd. (TTS.ASX), has pitched a A$1.9 million merger bid for Queensland-based UNiTAB Ltd. (UTB.ASX), the second-largest wagering company on the continent. Under the merger plan Tattersall's would issue 4.33 Tattersall's shares in exchange for each UNiTAB share. Alternatively, Tattersall's has also set aside A$522 million to purchase UNiTAB shares from shareholders who prefer to receive cash.
A merger of the two companies would be expected to generate about A$3 billion in annual turnover and put the newly formed entity in a position to compete with Tabcorp, Australia's largest gambling company, which recorded A$3.7 billion in revenue last year. It is also thought that synergies between the two companies would save A$10 million in costs during the first year of the merged company's operation and A$20 million during the second year.
"UNiTAB and Tattersall's are an excellent fit," stated UNiTAB chairman George Chapman. "We have similar business models an strategies, complementary assets and skill bases."
Playtech IPO Expected This Week
The flotation of online gambling software provider Playtech is expected to take place this week, and shares are reportedly more than five times subscribed at an initial price of 2.6p each. The IPO should raise about £175 million for the company and give it a market capitalization of about £550 million.
PokerStars May Float Afterall
Rumors surfacing this week speculate that PokerStars may opt for a float on the Alternative Investment Market of the London Stock Exchange after all, rather than seek a sale. In January the company chose investment bank NM Rothschild to pursue options to either float or sell the company for a figure thought to be more than US$2 million. At the time a sale was thought to be the more likely course of action because of NM Rothschild's lack of an equities distribution division. Various news reports this week now suggest that the owners-- Isai Scheinberg and his family—now favor floating the company on the AIM.
Las Vegas From Home.com Lists on Frankfurt Exchange
The common shares of Vancouver-based online gambling software provider Las Vegas From Home.com Entertainment, Inc. (LVH.V) have been accepted for listing and have begun trading on the Frankfurt Stock Exchange under the trading symbol LVH. The company also remains listed on the Toronto Venture Exchange. Commenting on the Frankfurt listing, CEO Jake Kalpakian stated, "The listing of the company's shares of the Frankfurt Stock Exchange provides the company with increased exposure in the European Investment community as well as increasing the visibility of its products in that marketplace." Las Vegas From Home.com is also the parent company of Action Poker Gaming, Inc.
Fortuna De-lists from Berlin-Bremen Exchange
London-based Fortuna Gaming Corp. (FGAM.OB) announced that it was successful in getting its shares de-listed from Germany's Berlin-Bremen Exchange, effective March 14, 2006. The company says it is currently undergoing various initiatives related to its mobile gaming platform and will soon launch a play for free version of Texas Hold 'em in North America as well as a pay to play version in Europe in Asia.
Fortuna says its strategy going forward is to acquire complimentary medium sized Internet gaming companies operating in legal jurisdictions. The company is now looking forward to the cross marketing and revenue initiatives that will arise from its purchase of Gambling Federation in December 2005.
Reporting
Online gaming firm Interactive Gaming Holdings Plc (IGH.L) has reported preliminary results for its fiscal year ended November 30, 2005, posting an overall pretax loss of £864,000. The loss includes head office start up costs of £470,000 and compares to a loss of £388,000 over the 18 months prior to the latest fiscal year. Turnover for the latest fiscal year amounted to £8 million, which compares to no turnover whatsoever over the preceding 18 months. In addition to the raising of £1.52 million from a placement of shares on the AIM in March 2005, IGH also acquired Heathorns and Premiere Bet during its latest fiscal year and contracted Orbis as its gaming software provider.