World Poker Tour stands to gain substantially from a late second takeover bid which was announced Monday, identifying the origin of a second bid that WPT revealed in a mandatory SEC disclosure last week.
Peerless Media Limited, a subsidiary of the Online Gambling giant Party Gaming, is the new bidder...and it's offering $12.3 million for the company's assets and 5 percent of future gaming and other revenues - a significant improvement on the previous officer from Gamynia Limited. This was made three weeks back and reported in earlier bulletins. The deal includes all elements agreed in the Gamynia offer, which now falls away.
In early August Gamynia's offer of $9 075 000 and a percentage of future revenues was accepted by WPT management, subject to shareholder approval (a step yet to be taken). At the time some 39 percent of the stock was committed to the Gamynia deal by shareholders, with more support expected. This support has been refocused on the Peerless offer.
"The Board of Directors has determined that PartyGaming's acquisition proposal is financially superior and we look forward to working with one of the pioneers and leaders in the poker and online gaming markets to provide a strong vehicle for the WPT brand to continue its global expansion and return to online gaming," a WPT statement from CEO and president Steve Lipscomb read, advising that any agreement would have to be approved by a majority of the stockholders, and that with this in mind completion could take as long as the last quarter of the 2009 year.
"PartyGaming has been an important partner for a number of years and we are confident that they will be an excellent manager of our brands in the future," Lipscomb added.
The net cash proceeds from the asset sale will be retained by WPTE which plans to use the cash to develop or acquire a non-poker related business. WPTE does not currently intend to distribute any proceeds from the asset sale to its stockholders.
ElectraWorks Ltd is guarantor for Peerless Media.