|Online bookmaker Sportingbet faced off a financial crisis recently that could have seen them bought out. Indeed one take over bidder, that remained anonymous, was prepared to do the honours for a whopping £46 million. Now that’s a price tag.|
Sportingbet have announced that they will remain a public company. Perhaps the amount of the offer was itself enough to keep the wolves from their door. After all the company is certainly worth a bob or two yet, and given time should be able to pay them off, with added interest. Whatever the reason, the financial problems have disappeared.
The whole crisis came about when they realised that they couldn’t afford to pay up for the acquisition of Sportsbook in 2001. They paid £33 million for Sportsbook back then, but were obliged to pay an additional £52 million towards the end of this year.
Former Sportsbook owners have agreed to reducing that to about £40 million which can be paid over a three-year period. To top that, it turns out that Barclays Bank, like any bank eager to do well out of high interest, have gone and given Sportingbet a £10 million loan and extended an existing £10.5 million overdraft agreement.