re: have : a look. value a56c per share Well here is the...

re: have : a look. value a56c per share Well here is the announcement of the sale from Betcorp for all to read and draw your own conclusions.

cheers
toscanunan



BETCORP LIMITED
(“Betcorp” or “the Company”)
DISPOSAL OF GAMING OPERATIONS
Betcorp announces that the Company has entered into an agreement, conditional only on the approval of Shareholders, to sell the Group’s gaming operations and operating infrastructure in Antigua and Toronto in their entirety (“the Gaming Operations”) to Bodog Entertainment Group SA.
The consideration payable to Betcorp in respect of the Disposal comprises a maximum cash consideration of US$9 million payable in five instalments. US$3 million is payable on completion and the balance of US$6 million in four equal quarterly instalments during the 12 months following completion. In addition, the Purchaser will be assuming the net current liabilities of the Gaming Operations of US$2 million, implying an enterprise value of US$11 million.
The cash consideration will be reduced by the extent to which the net current liabilities of the Gaming Operations at completion exceed $2 million. Currently, these are expected to be approximately US$3 million. The final amount will be dependent, inter alia, on the trading performance of the Gaming Operations during the period through to the completion date.
Had the Group’s Gaming Operations been closed down, the Board estimates that the cost of severance and closure would have been approximately US$6 million.
Reasons for the disposal
In the United States, the passing into law of the Unlawful Internet Gambling Enforcement Act on 13 October 2006, means that the receipt of funds from US residents by online entertainment companies located in any other country of the world in connection with internet gambling, has become a Federal offence.
The Board received legal advice and representations from its lawyers, bankers and other advisors and concluded, in common with many other listed companies in the sector, that it is no longer possible for the Group to provide its services to United States residents. The two key issues which led to this conclusion are the possibility of the extra-jurisdictional application of United States legislation and the restrictions on financial transaction processing which are following from the Act. As a result, the Group suspended the accounts of United States residents on 13 October 2006.
Over the last 18 months, the Group has made good progress in increasing the level of business from countries other than the United States, principally in Europe. This has been achieved by a number of initiatives including the introduction of European facing brands and the development of a proprietary multi-currency operating platform. Despite this progress, however, the US market still represented over 85% of the Group’s revenues in the period from 3 July 2006 to 13 October 2006.
The Board has considered whether its non-US business could be profitable on the basis of a substantially reduced cost base, but has determined that this would not be possible without a major increase in trading volume. In the current environment, such expansion would require substantial investment in marketing and brand development, or the acquisition of existing non-US facing operators. The Group does not have access to the funds required to adopt either of these strategies and accordingly, the Board has concluded that it is in the best interests of shareholders to dispose of the Group’s entire gaming operations and infrastructure.
The Board has considered approaches from a number of interested parties and has concluded that the terms agreed with the Purchaser represent the best available to the Group. In addition to the cash consideration receivable of up to US$9 million, the Purchaser is also assuming the net current liabilities of the Gaming Operations and has undertaken to honour the existing employment rights of employees and the Group’s obligations to its customers.
The Purchaser has stated that it intends to invest in developing its own brand into the European and Asian markets utilising the multi-currency shared purse operating platform developed by the Group. The Purchaser has also undertaken not to use any URL, trade mark, brand name or other intellectual property acquired from the Group to provide services to United States residents, following its purchase of the Gaming Operations.
Use of Proceeds and Post Disposal Strategy
The Group will have exited its gaming interests in their entirety, immediately following the Disposal. As a result, the net assets of Betcorp will comprise cash, the deferred consideration payable by the Purchaser and creditors. The Board believes that shareholders’ best interests will be served by the return of funds to them and the Board’s plans for this will be announced as soon as possible. Shares traded on AIM and currently listed on ASX will rank pari passu in any future dividend or distribution, both before and after the de-listing of the Company’s shares from ASX.
Extraordinary General Meeting
Completion of the Disposal is subject to the prior approval of Shareholders at an EGM expected to take place within the next four weeks. A notice of EGM and an explanatory memorandum will be sent to shareholders shortly.