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Financial news

Proposed Merger of PartyGaming and bwin (PG release)

29 Jul 2010

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Proposed Merger
of
PartyGaming Plc (‘PartyGaming’) and bwin Interactive Entertainment AG (‘bwin’)


 
Highlights

  • Creation of the world’s largest listed online gaming business
  • Market leading positions in all key verticals of online poker, sports betting, casino and games (in particular bingo)
  • Pro forma 2009 net gaming revenue of €682 million  and EBITDA of €196 million, before synergies
  • Estimated annualised synergies of approximately €55 million
  • Proposed Merger is expected to be significantly earnings enhancing for both companies pre-amortisation
  • Enlarged Group to be owned approximately 48.36 per cent. and 51.64 per cent. by PartyGaming and bwin shareholders respectively and will be listed on the London Stock Exchange
  • Jim Ryan and Norbert Teufelberger to be Co-Chief Executive Officers of the Enlarged Group
  • Irrevocable undertakings in support of the Proposed Merger have been received from shareholders currently holding 28.5 per cent. and 14.4 per cent. of PartyGaming and bwin’s existing issued share capital respectively

Commenting on the Proposed Merger, Jim Ryan, Chief Executive Officer of PartyGaming said:
“This is a transformational opportunity for both our companies to create the world’s largest listed online gaming business. With market-leading positions in poker, sports betting, casino and games (in particular bingo), the Enlarged Group will have a winning formula to exploit the growing online gaming market, supported by a strong balance sheet, significant cashflow generation and a highly experienced management team.”
Commenting on the Proposed Merger, Norbert Teufelberger, Co-Chief Executive Officer of bwin said:
“This merger of equals makes great strategic, operational and financial sense.  We will be in pole position to capitalise on the wealth of opportunities that will flow from the continued evolution and expansion of the global online gaming industry.”

Enquiries:
PartyGaming
Peter Reynolds, Director of Corporate Affairs
John Shepherd, Director of Corporate Communications
Tel: +44 (0) 20 7337 0100
bwin
Konrad Sveceny, Head of Investor Relations
Katharina Riedl, Head of Corporate Communications
Tel: +43 (0) 50 858 200 17

Deutsche Bank (Financial Adviser and Corporate Broker to PartyGaming)
Alastair Mathieson, James Davies
Charles Wilkinson, Mumtaz Naseem (Corporate Broking)
Tel: +44 (0) 20 7545 8000
McQueen (Financial Adviser to bwin)
George Fleet, Simon Croft-Baker
Tel: +44 (0) 20 7484 8800


Analyst meeting, webcast, dial-in and conference call details: 29 July 2010
 There will be an analyst meeting for invited UK-based analysts at Deutsche Bank, 1 Great Winchester Street, London EC2N 2DB starting at 12.00 noon BST.  There will be a simultaneous webcast and dial-in broadcast of the meeting.  To register for the live webcast, please pre-register for access by visiting the Group website (www.partygaming.com).  Details for the dial-in facility are given below.  A copy of the webcast and slide presentation given at the meeting will be available on the Group’s website later today.
Dial-in details to listen to the analyst presentation: 29 July 2010
11.35  am Please call +44 (0) 203 003 2666
UK Toll Free 0808 109 0700
Title PartyGaming/bwin 
11.45 am Meeting starts
A recording of the meeting will be available for a period of seven days from 29 July 2009.  To access the recording please dial the following replay telephone number:
Replay telephone number +44 (0) 208 196 1988
Click here for international replay numbers
Replay passcode: 6939753#


International Conference call: 29 July 2010
For international analysts and investors there will also be an opportunity to put questions to Jim Ryan, Chief Executive Officer of PartyGaming, and Norbert Teufelberger, Co-Chief Executive Officer of bwin, by way of a conference call.  The details of the call are as follows: 
6.50 pm Please call +44 (0)203 003 2666
UK Toll Free 0808 109 0700
7.00 pm Conference call starts
A recording of the conference call will be available for a period of seven days from 29 July 2010.  To access the recording please dial the following replay telephone number:
UK Replay telephone number +44 (0)208 196 1988
Click here for international replay numbers

UK Replay passcode: 9129104#
All times are British Summer Time.

For the full release please click here.

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