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SPORTINGBET SIZES UP DANISH MARKET

Wednesday October 12, 2011 : Key acquisitions will make online gambling company one of the biggest players in Denmark's newly regulated market
 
Running close on the heels of mutually terminated offer discussions with Ladbrokes this week, online sportsbetting and gaming group Sportingbet Plc has announced a conditional binding agreement to acquire Danish online betting operations SHL, Danbook Limited (Danbook) and ISCI, Scandic Bookmakers Limited (Scandic) through its wholly owned subsidiaries, Sportingbet Holdings Limited and Interactive Sports (C.I.) Limited.
 
Both Danbook and Scandic are focused on the Danish market offering customers online fixed odds sports betting, casino, poker and games.
 
An aggregate maximum consideration of GBP 8.5 million is to be paid, broken down into GBP 4 million cash and GBP 0.5 million Sportingbet shares payable immediately on closing, with a further GBP 4 million cash to be paid across both transactions following the successful migration of Danbook and Scandic onto the Sportingbet platform.
 
The deal is expected to close early in 2012 following the satisfaction of conditions including the successful award of new Danish gambling licences to both Danbook and Scandic due to come into force January 1, 2012, and the launch of websites compliant with the new Danish regulations,
 
Sportingbet views the regulatory framework in Denmark as representing a commercially viable opportunity, and has already applied for a licence said a company spokesperson.
 
Andrew McIver, chief executive, Sportingbet, commented: "These acquisitions emphasise Sportingbet's commitment to generating revenue from regulated markets. We have already demonstrated our ability to deliver strong growth in licensed territories such as Australia and we are excited by the opportunity that Denmark represents."
 
A number of key individuals from Danbook and Scandic will be retained to provide services to Sportingbet and the enlarged group.
 
Sportingbet's acquisition of Australian online gambling company Centrebet for A$ 183 million earlier this year, other Sportingbet entities and the acquisitions currently on the table would make the online gambling company one of the biggest players in Denmark's newly regulated market.



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