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Centrebet accepts $183m takeover offer

Centrebet accepts $183m takeover offer

Online gambling company Centrebet International (ASX:CIL) has accepted an offer to be acquired by London-Listed Sportingbet for around $183 million.

CIL shares grew to a high of $1.960 in Friday's trading on the news, before closing 5.98% higher for the day at $1.950.

Sportingbet has offered $2.00 per share for Centrebet shares, a 26% premium on their trading price on May 10, the last day before Sportingbet's interest was made public. It is an ebitda multiple of 13.2x broker forecasts for FY11.

The Kafataris family - which collectively own 59.66% of Centrebet - and each director will vote for the proposal if Sportingbet receives its own shareholder approval and satisfies a capital raising condition.

This condition is for Sportingbet to raise enough to fund the transaction through an underwritten share issue and a convertible bond issue.

As well as the cash, Centrebet's current shareholders will be given the rights to 90% of any net proceeds of a litigation claim challenging an ATO order on GST.

Centrebet said if it wins the challenge, it stands to gain up to $90.7 million, with $10.5 million immediately recoverable and the balance applied as a future GST tax credit.

The board has also agreed to unanimously recommend the offer to the remaining shareholders if the conditions are met.

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Tags SportingbetASX:CILMergers and acquisitionsCentrebet

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