888 Holdings have recently purchased Wink Bingo, and as a result of specific terms of that acquisition it is now doubtful as to whether Ladbrokes will be able to finalise its acquisition of the 888 group.
888 Holdings caused further concerns by issuing a very unusual announcement, in which some of the agreements made during the takeover of Wink Bingo were released.
In the statement, 888 Holdings said: “Prior to payment of the full earn-out amount … 888 may not declare or pay any dividends or make distributions to shareholders, pay extraordinary management or advisory fees and bonuses, make any material acquisitions or disposals; or take any steps to delist or suspend 888′s shares.”
It added: “If at any time the current chief executive Gigi Levy ceases to be a member of the board of directors of 888, there is a change of control of 888 or 888 materially defaults under the terms of the agreement, the Wink vendors may require 888 to initiate a sale of Wink to facilitate repayment of the outstanding debt.”
Does this mean that Ladbrokes will have to wait until the final payment to Wink Bingo’s former owners is complete? That is, of course, if Ladbrokes is prepared to wait…
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