The cash shell quoted on London\’s AIM agreed to the reverse takeover of VIP Sports\’ parent company, as reported by Bookmakers Review in March.
Leisure & Gaming will pay up to Â£23.45 million for VIP and will propose to raise Â£7.0 million by issuing new shares, representing 26.1 per cent of the company\’s capital.
On completion, VIP shareholders will control 69.7 per cent of Leisure & Gaming.
The VIP Group includes nine online brands:
VIP (VIPsports, VIPsoccer, VIPcasinos, VIPpoker and VIPhorses), BetGameDay, Bet19, FiveCardCharlie, BetonGames, BetEuro, GoodasGold, WallStreetSuperbook and Fairdeal.
In the year ended 31 December 2004, VIP reported sales of $330.1 million and an operating profit of $6.0 million from a gross win of $19.1 million. The group has over 30,000 active customers.
In 2004, the largest component of the VIP business was sports betting, which accounted for 58 per cent of VIPâ€™s net win and generated net win margins of 5.2 per cent.
Alistair Assheton, founder and Managing Director of VIP, will join the Leisure & Gaming Board as Chief Executive Officer.
The acquisition is subject to shareholder approval at the Extraordinary General Meeting convened for June 24. Leisure & Gaming will eventually relist on the AIM on June 28.