Paddy Power Increases Stake In Aussie Firm

UK company now owns 60.8 percent of Sportsbet Australia

Irish online gambling group Paddy Power increased it’s holdings in SportsBet Australia Pty Ltd by 9.8 percent this week to a total of 60.8 percent in ownership. Paddy purchased the increased stake from Nambawan Capital for Euro 8.5 Million ($11.57 million) in terms of a clause in its original May 2009 agreement to buy in to the company that allows further ownership moves.

Business Week reports that Paddy Power’s total investment in SportsBet totals Euro 41.3 Million ($56.24 million), which clearly represents a significant controlling interest in the company. SportsBet Australia represents just one of several potential takeover candidates for the expanding Irish bookie.

In a statement Paddy Power management noted that the remaining 39.2 percent of Sportsbet’s shares would remain subject to existing transaction arrangements. Paddy poker has the option to buy the remaining interest in SportsBet Australia during 2012 or 2013.