By Clyde Mooney
BRI Ferrier, on behalf of the two biggest shareholders in Odyssey Gaming Limited (ODG), has accepted eBet’s off-market takeover offer for the embattled gaming company.
ODG was established in 1998 and listed on the ASX, and is one of only two Licensed Machine Operators (LMOs) permitted in Queensland.
ODG shares were valued around $0.01 for most of its first decade, with a brief explosion to $0.50 in 2006 before settling mid-2008 at around $0.04, where they have remained.
The two major shareholders, holding 68.05 percent of share capital, are both in receivership and have contributed a degree of uncertainty to the company’s future viability, substantially impacting on its ability to secure funding to develop the business.
eBet develops and markets a range of networked solutions for EGMs in NSW, NT and the ACT, and a successful takeover would be a strategic move into the Queensland market.
In March 2011 eBet announced a takeover bid all-cash offer of $0.07 per OGD ordinary share, but despite being a 75 percent increase on market value the offer was not enough to secure the deal.
In May eBet increased the offering to $0.08 per ordinary share plus a fully paid share in eBet for every three shares in OGD, mailing a notice of variation and Supplementary Bidders Statement to all shareholders and receiving an indication to accept by the largest shareholders.
Acceptance today of the eBet offer by BRI Ferrier brings with it unanimous recommendation by the directors.
The original deadline of June 10 for shareholders has been extended to 7pm (EST) Friday 24 June, 2011.
The offer is subject to a minimum acceptance of 50.1 percent and certain conditions, but acceptances to date suggest eBet will now have control of Odyssey and voting power in excess of 80 percent.