RNS Number:8045L
BETonSPORTS PLC
09 November 2006
BETonSPORTS plc ("the Company")
Since the issue of the Temporary Restraining Order ('TRO') by the Department of
Justice in the US ('DOJ') and the resulting closure of the Group's US business,
the Board has been evaluating the remaining non US businesses and assets, with a
view to meeting the Group's obligations and retaining shareholder value.
The Hooball business (an Asian facing online sportsbook and casino originally
acquired in May 2006) was today sold back to the original vendors for $2.25m in
cash. In addition to the cash consideration the purchaser has agreed to return
3,859,089 ordinary shares of 1p each in the Company issued as part of the
original consideration and to cancel $5m of outstanding consideration as well as
any future earn out. When the TRO was issued in early July 2006 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 when it fell due 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 this sale.
The Company's other Asian facing brands continue to trade normally and the
Directors are assessing the options for this business.
Negotiations with the DOJ continue with the aim of settling all charges against
the Company.
Contact:
Citigate Dewe Rogerson
Ginny Pulbrook
+44 (0)20 7282 2945
Ged Brumby
+44 (0)20 7282 2996
This information is provided by RNS
The company news service from the London Stock Exchange
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