[bigboydan]

Sportingbet (SBR Rated D+) buys out Centrebet (SBR Rated B+)

Sportingbet Completes Acquisition of CentreBet Australia

Australia is a rather strange country – a land of odd animals, strange terrain and fairly odd principles too. Online gambling activities are not allowed, although online sports-betting and the sale of lottery tickets is allowed online. Sports-betting also happens to be one of the fastest growing gambling marketplaces in this country, and now the Government is considering reviewing their online gambling policies very shortly. They have realized that prohibition does not work (unlike the US); Australian people still gamble online and the law has little control over this. Legalizing this industry will make it easier for them to control, and there is the added fact that more money will be available to the Federal Government for monitoring and other purposes.

In a recent acquisition – the K-listed Sportingbet plc has completed all business to take over Australia’s Centrebet International Limited. One can’t quite help wondering if online gambling and its potential in a newly regulated market could be one of the driving forces behind this deal? It follows the execution of a two-part inter-conditional scheme for shareholders and performance right-holders, but we are not really interested in all that red-tape.

Centrebet equity has been valued at approximately $183m (AUD), for which cash considerations will be paid to shareholders at a $2 premium. There are still GST litigation rights claims and other considerations – apparently gambling operators in Australia have been paying too much tax, and a couple of massive claims have been settled, which will also see shareholders better off. If you are looking for a gamble and don’t want to take a risk on the roulette wheel, investing in gambling companies, especially those with a strong online presence is a pretty smart bet to take. Shares in Sportingbet plc on the London Stock Exchange, gained 1.89% up to 54.00 today. Centrebet Shares were suspended from quotation on the Australian Securities Exchange last week in lieu of the acquisition.

[laconic]

Sportingbet's (illegal) Turkish business (20% of their total revenue) is seemingly still up for sale, meaning they still really want to sell to Ladbrokes (who want to buy) but wont touch any illegal bookmaking. All this consolidation that is going on is not good for us. Sportingbet will be no loss to anyone, but Centrebet was a good independent out.

[Degenerate]

It's sad to see centrebet gone.