Bwin.party Independent Trustees of both Emerald Bay Limited and Stinson Ridge Place 50 million Shares in Company
Bwin.party, online gaming operator is welcoming its shareholders Stinson Ridge Limited and Emerald Bay Limited to place part of its shares, up to 50 million in the company.
A statement was released pertaining to the share movement by Bwin.party saying it confirmed the movement and that although its board was not for it, the movement is consistent with its Trustees obligations (under the October 2013 agreement) to sell their holdings before October. These stipulations and terms is steadily according to the divestiture arrangements that were entered into by both Stinson and Emerald.
Chairman of Bwin.party Philip Yea, said that, “We welcome today’s news regarding the placing by the Trustees as it provides clarity for the market regarding a significant block of shares that were due to be sold during 2015.” The sale has no bearing on the board’s discussions regarding proposals received from third parties that are continuing and whilst there can be no guarantee that these discussions will result in any transaction taking place, the board will make further announcements in due course.”
The ongoing negotiations will have no impact with the potential sale of the business he reassured as well.
“Our view remains that a bid is the most likely outcome. Much will depend on the scale of synergies and the execution risk the bidders place on any deal. At the top end, it is possible to see 130p plus but equally a more cautious stance on execution risk suggests limited upside from here. If a bid does not materialize then the stock could head back to the 80p-90p level. On balance our view remains that investors should hang on.” – Analyst Nick Batram at Peel Hunt