|Are Sportingbet are looking to sell shares to save their skins? It just so happens that a little help from an undisclosed source is offering to take shares off their hands for 30p a pop.|
The initial proposal has a few pro-visos, as you may expect. Of course the Sportingbet board and shareholders have to go along with it for a start, but they’re probably not in a position to hang on for long for a more fortuitous proposal. Mind you, they do have as many as 35,000 customers on their books worldwide.
It seems the problem lies in the slightly embarrassing difficulty to start paying off their £130 million acquisition of Sportsbook made in 2001. The previous owners are justifiably concerned that the company isn’t in the position it agreed to be in to start paying the tab.
For a couple of months now Sportingbet have been in negotiations with a variety of funding groups but has been unsuccessful in getting anything concrete as yet. As a spokesman for Sportingbet said, despite a strong start to this financial year: 'There can be no certainty at this stage that a formal offer will be made by this potential offer or for the company.”