Leisure Gaming conditionally agreed to the reverse takeover of VIP Management Services
The cash shell quoted on London's AIM agreed to the reverse takeover of VIP Sports' parent company, as reported by Bookmakers Review in March.
Leisure & Gaming will pay up to £23.45 million for VIP and will propose to raise £7.0 million by issuing new shares, representing 26.1 per cent of the company's capital.
On completion, VIP shareholders will control 69.7 per cent of Leisure & Gaming.
The VIP Group includes nine online brands:
VIP (VIPsports, VIPsoccer, VIPcasinos, VIPpoker and VIPhorses), BetGameDay, Bet19, FiveCardCharlie, BetonGames, BetEuro, GoodasGold, WallStreetSuperbook and Fairdeal.
In the year ended 31 December 2004, VIP reported sales of $330.1 million and an operating profit of $6.0 million from a gross win of $19.1 million. The group has over 30,000 active customers.
In 2004, the largest component of the VIP business was sports betting, which accounted for 58 per cent of VIP’s net win and generated net win margins of 5.2 per cent.
Alistair Assheton, founder and Managing Director of VIP, will join the Leisure & Gaming Board as Chief Executive Officer.
The acquisition is subject to shareholder approval at the Extraordinary General Meeting convened for June 24. Leisure & Gaming will eventually relist on the AIM on June 28.
Bookmakers Reviews - 2005-06-02 11:04:24