MAJOR ONLINE GAMBLING GROUP ON THE SALES BLOCK?
26th June, 2014 at 04:56:17
Reports that Bwin.Party Digital Entertainment is considering the sale of all or some of its assets.
The struggling European online gambling giant Bwin.Party Digital Entertainment is considering the sale of some or all of the company as part of a strategic review, two unidentified sources have told Bloomberg business news.
The Gibraltar-based company has reportedly hired Deutsche Bank AG to assist in its deliberations, and a decision is anticipated within the next two months.
Bwin.Party investors have seen the value of their shares plunge which, along with board changes and this, combined with mediocre results has triggered the review.
There are also fears that the ownership change at Rational Group could see Pokerstars reentering the US market, further eroding Bwin's position as a provider in that market (see previous reports).
Bwin stock, currently worth around 93 pence a share, has declined 25% this year alone, resulting in a market value of £ 759 million.
In March this year CFO Martin Weigold reported that the company faced a difficult year in 2013, including a decline in sales due to regulatory and competitive challenges in a number of markets, and warned that Bwin.Party was considering the divestment of non-core and surplus assets (see previous report).
UPDATE: Bwin.Party issued a press statement Thursday morning advising as follows:
"The Board of bwin.party has noted the recent speculation in the media regarding a possible break-up or sale of the company.
"Since his appointment as Chairman last month, Philip Yea has been working with the executive management team on ways in which the Group can increase shareholder value, however we can confirm that there are no plans to break-up or sell the company."
Related News Tags: Gibraltar, Pokerstars, Bwin