By Annette Shailer

eBet Limited has announced today (Mar 7) an all-cash offer of seven cents per share for all of the ordinary shares issued in ASX-listed Odyssey Gaming Limited.

The off-market takeover offer represents a 75 percent premium over the 90-day Volume Weighted Average Price (VWAP) of Odyssey’s shares.

“eBet’s offer will crystallise a significant premium for Odyssey shareholders and will give them the certainty of cash over the uncertain future they currently face,” said eBet CEO, Tony Toohey.

“Odyssey’s two largest shareholders are in receivership. These two shareholders hold between them 68.05 per cent of Odyssey’s shares on issue.

“This means there is a high degree of uncertainty about the future viability of Odyssey. This situation will substantially impact Odyssey’s ability to secure funding which it requires to develop its business and grow market share.”

Odyssey Gaming is a licensed machine operator (LMO), one of only two in Queensland, with the other being Maxgaming.

eBet, which develops and markets a range of networked solutions for electronic gaming machines in New South Wales, Northern Territory and the Australian Capital Territory, is also the exclusive distributor of WMS poker machines in NSW.

Should eBet’s takeover offer be successful it would be a strategic move for the gaming systems company into the Queensland market.

Odyssey has struggled in recent years to grow its revenues and profits. Its financial position as at December 31, 2010 has deteriorated, with half yearly net profit after tax down by some 32 percent compared with the same period in the preceding year, and its cash position down by some 35 percent since it last reported as at June 30, 2010.

The Shout Team

The leading online news service for Australia's beer, wine, spirits and hospitality industries.

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