BetonSports, which acquired Hooball in May for $10m in cash and future payments of up to $12m, sold the Asian online sportsbook back to the original vendors, which have agreed to return 3.85m BetonSports shares issued as part of the original purchase and to cancel $5 million of outstanding payment considerations.
BetonSports said that when the US Department of Justice issued the Temporary Restraining Order in July, the full integration of the Hooball business had not been achieved and the management of the group had not taken full control of the operation. The company’s inability to pay the outstanding consideration or to fully integrate the business, as well as damage to the business caused by the legal action of the DOJ and its impact on customer confidence have driven the pricing of the sale.
BetonSports also stated that its other Asian facing brands continue to trade normally while the directors are assessing the options for this business.
In separate news, the Costa Rican Ministry of Labor Rodrigo Acuna told local newspaper Al Dia that BetonSports will not be able to meet its obligations towards the over 800 ex-employees by November 10.
BetonSports, which reportedly owes $4.3m to its former employees, has agreed to pay 30% of its dues by November 10 and the remaining balance by December 15.
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