Mybet board signs term sheet with strategic investor

Mybet Holding’s B2C online business is set to switch to new ownership after the management board of the Berlin-based online sports betting and casino company signed a “non-exclusive term sheet” with an unnamed investor.

According to the term sheet – which is not legally binding but is a precursor to a final acquisition contract – the value of the proposed 100% takeover of the company’s business under the www.mybet.com domain would be “in the high single-digit million range”.

The outline agreement, which was announced at 18:30 local time on Saturday evening, led to a 15% rise in mybet’s share price on the Xetra exchange by 11:45 this (Monday) morning.

However, the share price has nearly halved since mybet announced on June 12 that it had curtailed talks with a potential investor after “differences of opinion concerning the implementation of strategic and operational collaboration in the online sector” emerged during a 30-day period of exclusive talks.

Under the proposed new deal, the investor would snap up 100% of mybet’s companies, Personal Exchange International and PNO Casino.

“In this context, the investor will acquire the full and exclusive online rights to the ‘mybet’ brand,” mybet said.

“In the process, mybet is allowed to continue to use these rights to an extent necessary for the continuation of its remaining business segments B2B services as well as for the operation of the stationary betting shops.”

Mybet said that it intends to “focus on the group’s positively performing B2B service segments as well as the operation and expansion of the stationary betting shops”.

The deal remains subject to sealing a binding contract and the fulfilment of additional conditions.

In February, mybet said that “delays encountered” in online business in the company’s core markets, Greece and Ghana, would lead to lower-than-expected revenue and earnings for 2017.

In April, mybet postponed the anticipated publication dates for submitting its annual and consolidated financial statements for 2017. As a result, it said that its annual general meeting would not take place on June 20, as previously expected, but probably in August.

Calls to mybet by iGamingBusiness.com to clarify further details of the latest development were not answered.