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Yin Khing Investments, a British Virgin Islands company, has acquired the Australian and UK sportsbetting operation Canbet from International All Sports for A$1 million, reports the Australian Financial Review.
Canbet made a A$3.7 million loss in the half-year to 31 December 2008, and a loss of A$8.6 million in the 2007/8 financial year, and the divestment is expected to result in a A$12 million write-down by IAS.
Canbet Limited is a public company listed on the Australian Stock Exchange and owns Canbet Sports Bookmakers UK Limited, which is licensed by the UK government to accept bets via the Internet and by phone.
The sale comes after an exhaustive process both domestically and internationally in search of potential buyers, a spokesman for International All Sports Limited said Wednesday, adding that the sale includes all of IAS' poker and casino operations. IAS will retain its core Australian sports business operating from IAS.com, along with its Austote operations.
Yin Khing Investments Limited, is a BVI-registered entity which specialises in software solutions in the Internet entertainment market.
The agreement includes an undertaking by IAS to assist in the changeover to the YKI environment on a fee basis.
IAS Chairman Barry Coulter said: “The Canbet business has had a number of operational challenges, particularly following the changes to gaming laws in the United States and unsuccessful strategies to grow our European sports operation.
“The sale of Canbet presents an opportunity for IAS to refocus on our core Australian business. This transaction transforms IAS from a global operation into a more focused and profitable niche player in the Australian racing industry.”
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