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Ladbrokes Could Still Buy 888 Holdings

Ladbrokes Could Still Buy 888 Holdings

Written by: Richard Sharp on 18/04/2011 13:40
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It seems as though the proposed takeover of 888 Holdings PLC by Ladbrokes PLC could still happen if a suitable price can be hammered out.


A Takeover Still on the Cards?
 

This suggestion comes from 888 Holdings’ director and ex Chief Executive Officer Gigi Levy.
888 Holdings is based in Gibraltar and reported an increased 1st quarter revenue of 9%, giving them $75 million of profit. Online bingo was the main driver of this profit but the firm is still looking to enter regulated markets, and for this they need debt funding from somewhere to allow them greater flexibility.
 

The early days of the takeover talks were revealed by 888 last December and while this pushed up the company’s share price the lack of further movement on the deal had suggested to many analysts that things had cooled off.
 

As for Ladbrokes, they are trying to push ahead with online bingo growth and the acquisition of 888 Holdings should help them along this path.
 

It is believed that Ladbrokes might be able to get a cheap deal because 888 Holdings still owe money for the Wink Bingo takeover from late 2009, and need the cash in order to be able to pay this off.
 

The word from the 888 director quoted at the start of the story is that there is “no pressure” to get a sale pushed through to help them fund their entry into the Greek, Spanish and Italian online betting systems.
 

There has been no official word on the figure which would be needed to make the takeover, and neither is it known whether there are other potential purchasers waiting in the wings to see how things develop with the Ladbrokes bid.
 

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