Announcement re Wink Bingo

RNS Number : 1994D

888 Holdings plc

18 March 2011

 



18 March 2011

888 Holdings Public Limited Company

("888" or "the Group")

Announcement re Wink Bingo Earn Out

888, one of the world's most popular online gaming entertainment companies, announces that it has entered into an amendment agreement with the Wink Bingo vendors to reschedule the earn out payment payable in May 2011. 

Wink Bingo has been an extremely successful acquisition for the Group, performing significantly above expectations and, as announced on 7 February 2011, the earn out payment is expected to be at the upper end of the earn out range.  

The earn out period ends on 31 March 2011 and the final amount payable will not be known until May 2011.   Under the revised payment terms 888 will make an immediate payment of £9.26 million and further payments of £9.26 million on 21 May 2011 and £6.173 million on 31 August  2011.  The balance will be payable on 21 May 2012.  Payments due after 21 May 2011 will bear interest.  888 may prepay outstanding amounts without penalty.

Prior to payment of the full earn out amount, without the consent of the Wink Bingo vendors 888 may not declare or pay any dividends or make distributions to shareholders, pay extraordinary management or advisory fees and bonuses, make any material acquisitions or disposals; or take any steps to delist or suspend 888's shares on the London Stock Exchange. 888 may undertake any corporate transaction as long as the debt is repaid upon completion of the transaction. If at any time the current CEO Gigi Levy ceases to be a member of the board of directors of 888, there is a change of control of 888 or 888 materially defaults under the terms of the agreement, the Wink Bingo vendors may require 888 to initiate a sale of the Wink Bingo business to facilitate repayment of the outstanding debt. In cases where 888 goes into administration or liquidation, the Wink Bingo vendors may call for the return of the business at a price equal to the then outstanding earn out amount. For this purpose 888 has agreed to implement security over the assets comprising the Wink Bingo business in favour of the vendors.

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Contacts and enquiries

888
Gigi Levy, Chief Executive Officer	[phone]
Aviad Kobrine, Chief Financial Officer	[phone]
M:Communications
Ann-marie Wilkinson/Andrew Benbow	[phone]

 

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