BETSSON PAYS ADDITIONAL PURCHASE PRICE IN RELATION TO THE ACQUISITION OF BETSAFE

BETSSON PAYS ADDITIONAL PURCHASE PRICE IN RELATION TO THE ACQUISITION OF
BETSAFE

 

As previously announced Betsson AB (publ) (”Betsson”) has acquired
Betsafe (through the acquisition of the holding company Artic Invest AS)
(“Betsafe”), a gaming company based in Malta, offering sports betting,
casino and poker to clients primarily in the Nordic region.

In connection with the completion of the transaction on 15 June 2011,
Betsson paid an initial purchase price for the operations of Betsafe in
the amount of EUR 34.0 million, comprised of cash and cash equivalents
at a value of EUR 19.6 million and class B shares in Betsson at a value
of EUR 14.4 million. In addition, Betsson paid EUR 7.4 million regarding
acquired cash and cash equivalents and acquired net income. Based on the
development of the acquisition and the integration thereof during 2011,
an additional purchase price not exceeding EUR 27.5 million may become
payable by Betsson, which means that the total purchase price for the
operations will not exceed EUR 61.6 million and the total purchase price
(including the acquisition of cash and cash equivalents and acquired net
income) will not exceed approximately EUR 69.0 million.

Betsson has an option to pay any additional purchase price in cash or by
way of transfer or issue of Betsson shares. If Betsson decides to pay by
way of transfer or issue of Betsson shares, the final determination of
the additional purchase price will be based on the market value of the
shares delivered as of the settlement date. Betsafe has reached the
targets in 2011 for the additional purchase price amounting to EUR 15
million. If conditions are fulfilled, the remaining part of the
additional purchase price, i.e. up to EUR 12.5 million, is estimated to
be paid up until the end of the first quarter 2012.

The board of directors of Betsson has resolved that the first additional
purchase price in the amount of EUR 15 million shall be paid by way of
issue of Betsson shares. The board of directors of Betsson has
therefore, based on the authorisation granted at the Annual General
Meeting held on 12 May 2011, resolved to issue 1,056,403 class B shares,
whereby the share capital of Betsson will increase with an amount of SEK
2,112,806, from SEK 80,675,978 to SEK 82,788,784. The new class B shares
will be subscribed for by the sellers of Betsafe. The subscription price
for the new class B shares amounts to approximately SEK 130 per share,
corresponding to the average volume weighted share price for the Betsson
share during 30 trading days immediately prior to the issue date.

Trading in the new shares is expected to commence on NASDAQ OMX
Stockholm on or about 8 September 2011. As a result of the share issue
described above, the number of shares in Betsson will increase from
40,337,989 (5,420,000 class A shares and 34,917,989 class B shares) to
41,394,392 (5,420,000 class A shares and 35,974,392 class B shares). The
number of votes in Betsson will increase from 89,117,989 till
90,174,392.

For further information, please contact Magnus Silfverberg, CEO and
President Betsson AB (publ), telephone +46 (0)8 506 403 00 or +46 (0) 70
27 147 00 or magnus.silfverberg@betssonab.com