TOTAL SPORTSBET ACQUISITION BACKED BY SHAREHOLDERS

Posted 2/22/11 : Near unanimous vote on remaining minority stake
 
The Irish Times reports that Irelands largest bookmaker Paddy Power's shareholders have given their near unanimous vote at an extraordinary general meeting held in Dublin to purchase the remaining minority stake in Australian bookmaker Sportsbet.
 
Paddy Power acquired 51 percent in Sportsbet in May 2009, an additional 9.8 percent in February 2010 and further announced in December 2010 its intention to take up the remaining 39.2 percent for a consideration of AUS$132.6 million.
 
Paddy Power will make an additional AUS$25 million if Sportsbet's EBITDA exceeds AUS$80 million.
 
Patrick Kennedy, Chief Executive, Paddy Power told shareholders that the rationale for the deal is both strategic and financial in that taking full control of Sportsbet will increase Paddy Power's exposure to the fast-growing Australian market and to one of the top performing developed economies and that the acquisition will be earnings enhancing from the start.