888 Family Owners Would Support An All-share Merger
2015-03-24 18:18:35.790 GMT
Ashley Armstrong
March 24 (Telegraph) -- Chief executive of gaming company
says the family shareholders are "not natural sellers for cash"
as it hands investors a special payout after the failed takeover
by William Hill
The chief executive of 888, the gaming firm which called off
takeover talks last month with William Hill, has revealed that
its major shareholders would back an all-share merger with a
rival.
Brian Mattingley, who is being promoted to executive
chairman of the group in May, said that after intense discussions
with 888’s major family shareholders there has been a commitment
from them to be supportive of management.
888 is controlled by the Shaked family, who own 48pc and the
Ben-Yitzhak family, who own around 10.5pc. Avi Shaked is
understood to have derailed talks with William Hill after
resisting a proposed 200p-a-share takeover. Mr Mattingley said
that the major shareholders were "not natural sellers for cash
but they would be supportive of 888 being a consolidator". He
added that they would see an all-share combination with a rival,
rather than a cash takeover, "as a positive move".
The 888 boss said that the company was also looking to make
its own acquisitions which could boost its sports business and
replace the earnings lost as a result of a new duty on online
gaming profits - the UK's point of consumption tax .
"We will not be making knee-jerk acquisitions or panic
buying, but we will not need shareholder approval to make these
deals", Mr Mattingley said.
The company, which offers casino, poker and bingo games,
toasted “another record year” after reporting that it had ended
the year debt-free after growing pre-tax profits by 28pc to $68m
(£45.7m) during 2014.
888 also reported earnings had lifted by a third to $101m
and a 14pc jump in revenues to $455m during 2014, boosted by a
strong performance in its Sports division.
888 said it would hand investors a special dividend of 7
cents-a-share, on top of a final dividend of 4.5 cents. Mr
Mattingley said that the payout was "not compensation for the
aborted takeover" and it was rather part of the group's strategy
to return excess cash to shareholders.
888, along with its gambling rivals, has suffered at the
hands of regulators who have introduced a rash of new rules
including the point of consumption tax.
However, Brian Mattingley, chief executive said that a
potential legal challenge to HMRC would unlikely result in the
duty being scrapped.
-0- Mar/24/2015 18:18 GMT
2015-03-24 18:18:35.790 GMT
Ashley Armstrong
March 24 (Telegraph) -- Chief executive of gaming company
says the family shareholders are "not natural sellers for cash"
as it hands investors a special payout after the failed takeover
by William Hill
The chief executive of 888, the gaming firm which called off
takeover talks last month with William Hill, has revealed that
its major shareholders would back an all-share merger with a
rival.
Brian Mattingley, who is being promoted to executive
chairman of the group in May, said that after intense discussions
with 888’s major family shareholders there has been a commitment
from them to be supportive of management.
888 is controlled by the Shaked family, who own 48pc and the
Ben-Yitzhak family, who own around 10.5pc. Avi Shaked is
understood to have derailed talks with William Hill after
resisting a proposed 200p-a-share takeover. Mr Mattingley said
that the major shareholders were "not natural sellers for cash
but they would be supportive of 888 being a consolidator". He
added that they would see an all-share combination with a rival,
rather than a cash takeover, "as a positive move".
The 888 boss said that the company was also looking to make
its own acquisitions which could boost its sports business and
replace the earnings lost as a result of a new duty on online
gaming profits - the UK's point of consumption tax .
"We will not be making knee-jerk acquisitions or panic
buying, but we will not need shareholder approval to make these
deals", Mr Mattingley said.
The company, which offers casino, poker and bingo games,
toasted “another record year” after reporting that it had ended
the year debt-free after growing pre-tax profits by 28pc to $68m
(£45.7m) during 2014.
888 also reported earnings had lifted by a third to $101m
and a 14pc jump in revenues to $455m during 2014, boosted by a
strong performance in its Sports division.
888 said it would hand investors a special dividend of 7
cents-a-share, on top of a final dividend of 4.5 cents. Mr
Mattingley said that the payout was "not compensation for the
aborted takeover" and it was rather part of the group's strategy
to return excess cash to shareholders.
888, along with its gambling rivals, has suffered at the
hands of regulators who have introduced a rash of new rules
including the point of consumption tax.
However, Brian Mattingley, chief executive said that a
potential legal challenge to HMRC would unlikely result in the
duty being scrapped.
-0- Mar/24/2015 18:18 GMT