RNS Number:4533K
Leisure & Gaming plc
13 October 2006


13th October 2006
                              Leisure & Gaming plc
                            ('LNG' or the 'Company')
                     Sale of all US facing operating assets


Leisure & Gaming plc (AIM:LNG) announces that the Board has concluded that the
sale of the Company's US-facing gaming businesses is the best course of action
given pending legal developments in the United States, and that a disposal is in
the best interests of shareholders, given the alternative of liquidating the
businesses at substantial cost estimated to be approximately $6.0 million. This
allows the Company to operate and grow its UK and European operations, free of
any potential contravention of US regulations.

The Company announces that it has sold all of the shares of its wholly-owned
subsidiaries, VIP Management Services N.V ("VIP"), Bon Bini Investments N.V., EH
Gaming Ventures Inc, ECom ServCorp Inc. and Nine Holdings N.V. (together the "
Subsidiaries") to Stockdale Investment Ltd ("Stockdale"), a newly incorporated
company established  by Alistair Assheton, former Chief Executive of LNG. The
sale of the Subsidiaries (the "Sale") represents the divestiture of all US
facing operating assets of the Company.  The consideration for the Sale is $1
paid on today's completion of the Sale.

By effecting this immediate disposal of the Subsidiaries, the independent
directors believe the Company will be in a position to meet its outstanding
commitments to creditors and continue to operate and develop the Company's UK
and European operations, which are licensed and regulated in the UK and Italy,
and which were acquired earlier this year. The independent directors believe
that these remaining group businesses, including our network of affiliate
relationships operating approximately 800 licensed retail gaming outlets across
Italy (under the BetShop Italia brand) will continue to grow and deliver value
to shareholders.  The remaining operations of LNG will continue not to accept
bets from the US.

The transaction is effective at 1.12pm on 13 October 2006 but remains subject to
ratification by the Company's shareholders, the consent of Barclays Bank plc and
certain other contingencies including the pending legal developments in the
United States, specifically passage of the US legislation known as the Unlawful
Internet Gambling Enforcement Act of 2006 and the provision to the Company of
the Fair and Reasonable Opinion (as defined below). Mr Assheton has stood down
from the Board as director and Chief Executive with immediate effect.  The Board
will make a further announcement in due course regarding the appointment of a
new Chief Executive.

Further details of the Sale will be set out in a circular convening an
extraordinary general meeting ("EGM") which will be posted to shareholders
within the next two weeks.  As a result of the transaction, the Company has sold
materially all of its trading business and assets. The Subsidiaries had net
income for the six months ended 30 June 2006 of approximately $9.4 million.

Given the timetable of legal developments in the United States, the independent
directors of LNG have sanctioned the completion of the Sale without seeking
shareholder approval in advance.  Whilst this may constitute a technical breach
of the AIM Rules, the directors determined that this was the best course of
action to follow given their responsibilities to shareholders and other
stakeholders. The only alternative open to the Company is to immediately shut
down the US businesses at a cost of approximately $6.0 million.  The Board
strongly believes that incurring such closure costs is not in the interests of
the shareholders. As described above, shareholders will be asked to ratify the
Sale at the EGM. In the event that the Sale is not ratified by shareholders at
the EGM, then Stockdale has agreed to close down the businesses without recourse
to LNG.

Altium Capital Limited has today resigned as the Company's Nominated Adviser and
Broker.  Accordingly, trading in the Company's shares has been suspended in
accordance with the AIM Rules.  The Company intends to appoint a new Nominated
Adviser and Broker as soon as practicable.

The Sale constitutes a transaction with a related party under the AIM Rules and,
accordingly, requires LNG's independent directors to make a statement that they
consider, having consulted with the Company's Nominated Adviser, that the terms
of the Sale are fair and reasonable insofar as LNG's shareholders are concerned.

LNG's independent directors consider that the terms of the Sale are fair and
reasonable, given the alternative of closure, and the new Nominated Adviser,
following its appointment, will be asked to provide the Company with an opinion
supporting this statement (the "Fair and Reasonable Opinion").


Enquiries:

Jonathon Brill/Billy Clegg, Financial Dynamics, 020 7831 3113




                      This information is provided by RNS
            The company news service from the London Stock Exchange
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