Australian resource mining developer Celsius Coal Ltd has shown its interest in a takeover by signing a heads of agreement (HOA) for the acquisition of Favourit Global Pty Ltd due to the potential seen in its social sports betting platform.
Since the gambling and gaming industry differs from its primary business, Celsius must move forward with a re-compliance process according to the Australian Stock Exchange's admission requirements.
The deal will see Celsius Coal pay Favourit shareholders 57 million in ordinary shares in Celsius at a value of A$0.20 each.
Upon completion of the acquisition, the Favourit board will be shuffled with current Favourit chief executive officer Gary Harris becoming Chairman of the Board while co-founder and former chief executive officer Toby Simmons, director Richard Kuo and non-executive director Dennis Verrios will all remain on board as directors.
sharpe
8 years ago
No doubt an interesting deal I think, the social sports betting platforms are not my favourite but obviously the management of Celsius Coal Ltd. sees a great potential in this kind of investment and probably they know exactly what they doing. I guess Favourit shareholders will be pretty happy with this deal.
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Shumar4life
8 years ago
Sport betting companies can give to their shareholders lot of money, so I can understand very well this kind of deals. It is important to see that their headman will stay on his duty, and there will be small change in management. That is important because time for adapting will be very small.
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