Intertain announces share buyback scheme

Intertain announces share buyback scheme

Thursday, September 17, 2015
Bargain shares to be snapped up by company

Intertain Group has highlighted its confident outlook by announcing plans for a share buyback scheme.

The bingo and lottery operator has shown its ambitions in recent years by spending more than C$1bn (€670,000/$759,000) on acquiring companies that operate the likes of JackpotJoy and Vera&John. It also secured the rights for the much-sought-after Bingo.com domain and Parlay Games' online bingo software source code in June.

The company’s Toronto-listed share price hit a high of C$19.94 at the time of the Parlay deal, but have recently dropped as low as C$11.11 – a price that the company views as a bargain.

Intertain said that it would purchase and cancel up to 3,617,740 common shares over a one-year period, representing up to approximately five per cent of the company’s shareholding.

The company said that it intends to fund such purchases through working capital, and added that it believes its current share price “does not reflect the underlying value of the company”.

Intertain president and chief executive John Kennedy FitzGerald said: “Alongside our shareholders, Intertain has built a very profitable business - a company with one of the highest rates of regulated revenue globally in the online gaming space.

“For that we are extremely thankful. Given, however, where our share price is today, management and our board are of the strong view that the best investment available to the company at this time is its own equity.”

Last month, Intertain chief financial officer Keith Laslop told TotallyGaming.com the he believes good regulation has been the key driver behind the consolidation trend in the gaming industry.

The company paid C$825m for Gamesys in April, which included the purchase of UK-facing brands Jackpotjoy, Virgin Games and Starspins. It also bought Mandalay Media, owner of Costa Bingo, Fancy Bingo and Rio Bingo, in a deal that could rise to C$116.5m.

Late last year, Intertain became a major player in Scandinavia with its takeover of Vera&John parent company Dumarca Holdings in a deal worth at least C$111.9m.

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