As anticipated by Bookmakers Review in December 2005, the Scandinavian television operator, has increased its equity interest in Bet24, by exercising an option agreement and acquiring all of the remaining shares in Nordic Betting Limited for a cash consideration of EUR 8m and a 10% shareholding in Modern Betting Limited.
MTG now owns 90% of Modern Betting Limited, which in turn owns 100% of Nordic Betting Limited.
Nordic Betting Limited operates the Bet24 online betting and gaming businesses, which in 2005 more than doubled its net sales up to SEK 252 million.
“Bet24 is the fastest growing company in MTG´s history and continues to grow its customer base and extend its product and service offering. Bet24 is expanding into new territories and has recently signed sponsorship deals with two leading UK football clubs that will drive further customer acquisition. The business benefits from the cross promotional opportunities arising from MTG´s extensive sports broadcasting rights and dedicated Viasat Sport channels. Bet24 has an experienced and entrepreneurial management team, and we look forward to continuing the rapid and successful development of this exciting business,” commented Hans-Holger Albrecht, President and CEO of MTG.
Elsewhere, Deutsche Bank downgraded the recommendation on BetandWin shares from Hold to Sell. “While the stock may be buoyed in the near term by World Cup sentiment and top-line growth, we believe stock is overvalued,” said Jon Tarasewicz, analyst at Deutsche Bank in London.
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