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BETALAND SALE COMPLETED
Friday, May 11,2012 : BETALAND SALE COMPLETED
But no details on the real buyer
GVC Holdings has announced that its sale of sports betting subsidiary Betaland has been completed following the Malta online gambling regulator's approval of the sale and transfer of existing licenses to the new owner.
The disposal, first announced mid-April, has been effected with remarkable speed. Back then, GVC announced that its wholly owned Maltese subsidiary, GVC Corporation Limited, had agreed with an independent third party company, GVC New Limited, to dispose of its Betaland sports book and gaming business for a nominal sum.
"GVC has been evaluating the future of its Betaland brand and has concluded that the returns on the business no longer justify the risks involved with this operation. Betaland was historically the lowest margin business of the group and heavily dependent on agency relationships," the company statement advised.
GVC commenced its Betaland operation in Q3-2007.
GVC New Limited is not owned by GVC, or any of its officers, shareholders or directors, but is an entirely independent company incorporated in Malta. Within 24 months of completion of the deal the transferee has agreed to change its name to a name which cannot be reasonably interpreted as being associated with the GVC Group, the company said.
The sale of Betaland is on a debt and cash free basis and for nil consideration. The transferee has agreed to take-on the majority of the staff of the business thus saving GVC significant redundancy costs.
In its last set of results GVC Holdings CEO Kenneth Alexander noted that the company had moved into providing B2B services for the first time, marking a change of direction for the group away from pursuing growth in pure B2C markets.
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