Queenco Leisure International Ltd. (QLI) (AIM:QLI), which owns and operates casinos and resorts, has purchased 51% of Casino Beograd in Belgrade, Serbia for €42 million from Casino Austria AG (CAAG).
The acquisition will be made through QLI's partially sand indirectly owned company Club Hotel Loutraki S.A. (CHL). On completion, CHL will increase its holding in Casino Beograd from 39% to 90%, and as a result QLI’s indirect holding in Casino Beograd will increase from 13.3% to 30.7%.
The price for the Purchased Shares is payable in two parts: the first tranche of €8.4 million is payable upon completion of the acquisition of the, and the balance of €33.6 million is payable no later than six months following the closing.
In addition, Casino Austria International Holding GmbH (CAIH), an affiliate of CAAG, has granted CHL an option to acquire either 50% or 75% of the issued share capital of Grand Casino Brussels, a wholly-owned subsidiary of CAIH, by paying CAIH either 50% or 87.5%, respectively, of CAIH’s actual investment in the Brussels casino as reflected in the relevant financial statements to be audited by an internationally reputable accounting firm to be selected jointly by CAIH and CHL. This option expires on March 10, 2009. The exercise of this option by CHL is subject to completion of the Beograd Acquisition.
Furthermore, Vasanta Holdings Ltd., a 50%-owned subsidiary of QLI (Vasanta), informed QLI that it has received from CAIH an irrevocable offer to enter into an agreement in which CAIH will have a call option to purchase from Powerbrook Spain S.L., a company controlled by Vasanta and the parent company of CHL (Powerbrook), and Vasanta will have a put option to cause CAIH to purchase from Powerbrook, ordinary shares of Powerbrook constituting 11.74% of the fully diluted share capital of Powerbrook and other securities of Powerbrook, providing for special rights.
This offer includes an agreement that provides that the planned transactions may only take place following completion of the Beograd Acquisition. The aggregate exercise price of the Call Option is €54.9 million and the exercise price of the Put Option is €49.5 million. There is no assurance that the offer will be accepted by Vasanta, and it will expire if it is not accepted by Vasanta by January 31 2009.
QLIhad revenue of €105.8 in the first nine months of 2008 and EBITDA profit of €39.3 million.
Published by Globes [online], Israel business news - www.globes-online.com - on January 6, 2009
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