LONDON (dpa-AFX) - Sportingbet Plc (SBT.L) reported proposed disposal of the Turkish language website and associated offshore assets for a minimum consideration of 125 million pounds in cash to East Pioneer Corp. B.V., which is supported by a services agreement with GVC Sports B.V. GVC Sports is a subsidiary of GVC Holdings Plc.
Sportingbet stated that the disposal is structured to be a three year earn-out followed by a balancing final payment. The company added that the transaction in line with its strategy of increasing the proportion of net gaming revenue from regulated markets.
Sportingbet noted that the proceeds are to be reinvested to improve growth in its regulated markets, either by specific marketing investment or in-fill acquisitions, or investment in new geographies.
Andrew McIver, Group chief executive, said, 'Following this disposal, Sportingbet will derive the large majority of its earnings from regulated territories. The proceeds from the sale of this unregulated income stream will be used to drive forward the rest of the Group. We have clearly shown our strategic intent and look to the future with confidence.'
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