IAS sells Canbet

Australia's International All Sports Limited after an exhaustive process both domestically and internationally in search of potential buyers, on Wednesday said that it has sold its struggling European-facing Canbet businesses, which include entire IAS' poker and casino operations, to Yin Khing Investments Limited for AUD$1 million in a binding agreement.

Yin Khing Investments Limited is registered in the British Virgin Islands and specializes in software solutions in the internet based entertainment market.

IAS will provide services to assist the migration of Canbet operations to YKI during the transition period, on a fee for service basis which is expected to conclude during Q3 2009. IAS will retain its core Australian business - IASbet.com - and the Norfolk Island based Austote, and will continue to offer the same range of services.

IAS Chairman Barry Coulter stated that the Canbet business faced operational challenges, particularly due to changes to gaming laws in the United States and unsuccessful strategies to grow the European sports operation. The sale of Canbet will allow IAS to refocus on its core Australian business, which will transform IAS from a global operation into a more focused and profitable niche player in the Australian racing industry.

IAS said that after deconsolidating the international Canbet companies, the sale transaction shall result in a one-off abnormal balance sheet write-down of approximately AUD$12 million. However, the sale is expected to result in an ongoing reduction in expenses of more than AUD$400,000 per month.

As a result of the Canbet sale and ongoing changes in industry dynamics, particularly the impact of advertising and product fees, the IAS Board of Directors have agreed to release all companies subject to standstill agreements in relation to trading in IAS shares.

The move could allow for another takeover attempt by domestic rival Centrebet, whose proposed takeover of IAS was foiled by the Takeovers Panel earlier this year.

Centrebet had launched a cash takeover offer for all of the shares in IAS, conditional on being released from the standstill agreement either by IAS or the Panel. The Panel decided not to release Centrebet from the standstill agreement leaving the company unable to proceed with its offer.

Written for Online Keno by Joy