DGAP-News: JAXX SE / Key word(s): Miscellaneous
JAXX SE sells lottery business for EUR 12.5 million
08.05.2012 / 08:58
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JAXX SE sells lottery business for EUR 12.5 million
Kiel, May 8, 2012 - Kiel-based JAXX SE successfully completed the
divestment process for its lottery business. The price of EUR 12.5 million
envisaged in the provisional agreement was confirmed by the extensive due
diligence investigations, which took much longer than planned.
The lottery business is to be sold to a group of private investors with
economic effect from January 1, 2012. For accounting purposes the
divestment takes place along with the loss of control with effect from May
1, 2012, as a result of which the group will retain its proceeds up until
that point and reduce the price by a corresponding amount. EUR 8.0 million
of the purchase price is due immediately, and a further instalment of EUR
1.0 million at the end of the third quarter of 2012. The balance will be
paid in the form of a fixed-interest loan granted to the acquirers, with a
term of 6 years and quarterly redemption.
The JAXX domains, JAXX brands and JAXX naming rights are also being sold as
part of the package, with the result that the financial holding company
JAXX SE will need to be renamed. Its change of name to 'mybet Holding SE'
is to be resolved at the Shareholders' Meeting on May 24 in Kiel.
The decision to sell off lottery agency business is based on the group's
desire to focus systematically on sports betting, casino and poker
products, which are largely carried by the mybet brand. The latest market
data serves to confirm the strategy of the JAXX Group: the German lottery
market continues to contract sharply. After the first three months of 2012,
the betting stakes for the traditional 6 from 49 lottery and its extra
draws were around 8.2 percent down on the same period of the previous year.
Even the new lottery product 'Eurojackpot', launched with great
expectations, has fared even worse than feared with stakes of latterly EUR
12.1 million per week, and there is the risk that it could cannibalise the
traditional lottery.
By contrast, the market for sports betting in Germany is opening up;
according to the latest estimates by market researcher MECN, it is set to
grow by more than 200 percent by 2015 to EUR 1.5 billion (gross betting
revenue). JAXX was already granted one of the first sports betting licences
in Schleswig-Holstein on May 3, 2012.
About JAXX:
JAXX SE, listed in the Prime Standard of Deutsche Börse, is a financial
holding company with holdings in international companies in the gaming
industry. JAXX currently holds interests in companies in Germany, the UK,
Italy, Spain, Austria, Malta and Belgium. JAXX SE has its headquarters in
Kiel. The holding companies cover the entire spectrum of the games and
gambling industry. Depending on national regulatory structures, they broker
or market sports and horse betting, lotteries, and casino and poker games.
The best-known brands of the JAXX Group include the sports betting provider
mybet. The shares of JAXX SE have been traded at Deutsche Börse since 1999
under ISIN DE000A0JRU67.
Contact:
JAXX SE
Investor Relations & Corporate Communications
Stefan Zenker
Tel. +49 (40) 85 37 88 47
Fax +49 (40) 85 37 88 30
Mail stefan.zenker@jaxx.com
End of Corporate News
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08.05.2012 Dissemination of a Corporate News, transmitted by DGAP - a
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Language: English
Company: JAXX SE
Jägersberg 23
24103 Kiel
Germany
Phone: +49 (0)431 88 104-0
Fax: +49 (0)431 88 104-40
E-mail: ir@jaxx.com
Internet: www.jaxx-se.com
ISIN: DE000A0JRU67
WKN: A0JRU6
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, München,
Stuttgart
End of News DGAP News-Service
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168531 08.05.2012
DGAP-News: JAXX SE sells lottery business for EUR 12.5 million
| Source: EQS Group AG