£12.8m Placing and Playtech agreement09 Jul 2009
- £12.8m Placing to Fund Future Growth
- Five year strategic agreement with Playtech
In addition, the Company has entered into a memorandum of understanding with Playtech Limited ('Playtech') that has set the term of the agreement for the supply of 'live' interactive games to the Playtech network to five years. Playtech is the world's largest publicly traded online gaming software supplier. Distribution will be via both Playtech's online customers and retail clients. NetPlay TV will supply a number of 'live' games including: Live Roulette, Live Blackjack, Live Bingo and a Live Fixed odds draw. As part of the agreement, NetPlay TV will migrate all of its services onto the Playtech technology platform, this agreement will also run for a period of five years.
The New Shares, which will be placed with investment company Directforce Trading Limited ('Directforce'), will represent approximately 29.9 per cent. of the Company's Enlarged Share Capital. The beneficiary of Directforce also has a beneficial interest in a significant shareholder of Playtech Limited.
The Placing is subject to the approval of the Company's shareholders at a General Meeting. A circular convening the General Meeting will be sent to shareholders shortly.
The Company has received irrevocable commitments from certain shareholders representing 43.4 per cent. of the Company's current issued share capital to vote in favour of the resolutions to be proposed at the General Meeting.
Martin Higginson, CEO of NetPlay TV plc, said:
'This agreement will take NetPlay TV to new heights. The investment of £12.8m into our business, along with the strategic relationship, both in terms of distribution and technology with Playtech, will enable us to drive the development of our converged gaming solutions.
''Live' gaming is being demanded by more and more customers and this agreement will allow us to deliver our products to a much wider audience.'
Mor Weizer, CEO of Playtech Limited, said:
'We have been looking for a partner in the 'live' interactive gaming market for some time. Our clients and their customers are demanding 'live' products and therefore it is logical we offer them the best services available. This agreement enables us to offer our licencees unique TV quality gaming shows, this will also enrich their offering to gamers, and will also boost Playtech's Bingo offering, increasing Playtech's bingo network liquidity significantly.
'We are extremely happy to partner with NetPlay TV Plc who are the clear leader in 'live' interactive gaming. We see this agreement as a natural step in Playtech's business strategy of entering into the interactive TV gaming market and further supplements the acquisition last year of interactive mass-multiplayer live gaming assets.
'We believe 'live' gaming is going to be very big in the coming years and, as such, a significant investment in this business makes perfect sense.'
A circular will be sent to shareholders in the Company. The issue of the Placing Shares is conditional, inter alia, upon the Company obtaining approval from its Shareholders to grant the Board authority to allot the Placing Shares and to disapply statutory pre-emption rights which would otherwise apply to the allotment of the Placing Shares. The Placing is further conditional upon Admission of the Placing Shares to AIM. A General Meeting will be announced in due course.
Application will be made to the London Stock Exchange for the New Shares to be admitted to trading on AIM.
NetPlay TV plc
Chief Executive Officer
Emma Kane / Mike Ward
Tel: 020 7566 6700
Tel: 020 7459 3600
Chief Executive Officer
c/o Bell Pottinger Corporate & Financial
Tel: 020 7861 3232
Notes to Editors:
- Publication photographs are available from Redleaf Communications or www.redleafpr.com
About NetPlay TV plc
NetPlay TV plc is listed on the AIM market of the London Stock Exchange (NPT).
NetPlay TV operates a number of interactive gaming services under a UK, and Malta gaming license, including Supercasino.com, Bingos.com and EuroTeleMillions.com. These services can also be viewed live on television on Sky Channel 866 - 24 hours a day, Freeview Channel 48 from 9pm - 5am and FreeSat Channel 851. The Company recently took over the production of the 'Challenge Jackpot' brand on behalf of Virgin Media Television which airs 24/7 on Virgin Media, Sky and three hours per day on Bravo 2 and Virgin 1.
The Company is focused on the delivery of a converged interactive gaming experience allowing its customers to interact with its games on a variety of platforms, TV, Internet and mobile from a common integrated wallet.