Paddy Power Increases Shareho

RNS Number : 0688H

Paddy Power plc

12 February 2010

 



12 February 2010

Paddy Power Increases Shareholding in Sportsbet to 60.8%

Paddy Power plc ("Paddy Power") today announces that it has increased its shareholding in Sportsbet Pty Ltd ("Sportsbet") to 60.8% through the buyout of a minority shareholder who had no executive involvement with the business.  The consideration for the 9.8% shareholding acquired amounts to AUD13.0 million (€8.5 million) which will be paid in cash. 

The remaining 39.2% of Sportsbet's shares will remain subject to existing transaction arrangements (which were announced on 2 October 2009), including unchanged contingent consideration of AUD10 million (€6.5 million) subject to EBITDA, as defined, exceeding AUD26 million (€16.9 million) and Paddy Power's call option to acquire any minority shareholding in either 2012 or 2013.  The implied enterprise valuation ("EV") for Sportsbet and its subsidiary, International All Sports Limited ("IAS"),  inclusive of contingent consideration, for today's transaction is approximately AUD185 million (€120.1 million), as compared with an implied EV of AUD147 million (€95.4 million) for Paddy Power's investments in Sportsbet last year.

In its last trading update issued on 12 November 2009, Paddy Power reported that from acquisition date to 10 November 2009, the total amounts staked in its Australian businesses grew year-on-year  in constant currency by 24% overall and by 47% in the online channel.  Paddy Power will issue its preliminary results for the year ended 31 December 2009 on 2 March 2010 and will provide an update on Sportsbet's current trading at that time. 

Notes: The shares will be acquired from Nambawan Capital Pty Ltd.  In the year ended 30 June 2009, Sportsbet and the IAS businesses acquired, combined generated EBITDA before once-off costs of AUD23.2 million (€15.1 million), while Sportsbet, before the consolidation of IAS, generated profit before tax of AUD9.0million (€5.8 million).  As at 30 June 2009, Sportsbet's gross assets amounted to AUD49.4 million (€32.1 million).

ENDS

For reference:

Patrick Kennedy  Chief Executive  Paddy Power plc  Tel: + 353 1 404 5912	Jack Massey Finance Director Paddy Power plc Tel: + 353 1 404 5912
Billy Murphy / Anne-Marie Curran Drury Communications Ltd Tel: + 353 1 260 5000   Mobile: + 353 87 2864079 (AC)	Rory Godson / Kay Larsen, Powerscourt Ltd Tel: + 44 20 7250 1446 Mobile: + 44 7912 516246 (KL)

 

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