THE DIVERSIFIED Financial Network Inc. (DFNN) group has given London-based Betfair International ENC the option to acquire a 40-percent stake in an overseas unit involved in the gaming business.
In a disclosure to the Philippine Stock Exchange, DFNN said Betfair would have the option to acquire the strategic stake in Interactive Entertainment Solutions Technologies (IEST), a unit of DFNN’s majority owned, Singapore-based subsidiary Pacic Gaming Investments Pte. Ltd. (PGI), at a strike price of $15 million based on enterprise valuation.
Bringing Betfair as a strategic partner in the DFNN group’s gaming business is part of a bid to replicate in Asia the former’s success in European online betting.
The option is valid until Aug 19, 2011, the disclosure said.
“The management of DFNN is studying its current investment structure into IEST and may possibly increase its holdings in IEST, ” the disclosure added. Betfair is the world’s biggest international online sports betting provider and the world’s largest betting community. As of April 30, Betfair had more than three million registered customers worldwide and processed, on average, more than three million transactions a day on its betting exchange.
The option given to Betfair is part of an earlier agreement tapping Betfair to provide IT solutions and boost the DFNN unit’s online gaming business.