The Internet Gaming Corporation (iGaming) has sold off subsidiaries which it says are in conflict with its main business - selling Internet gaming software and licensing Web sites for Internet gambling.
The JSE-listed company has disposed of its 60% interests in Internet Lottery, as well as its 60% interest in Internet Bingo, to listed Oxbridge Online.
iGaming`s 60% share of the transaction amounts to R48 million. This gives iGaming a 52% holding in the newly reconstituted Oxbridge, which will, with shareholder approval, be re-named Electronic Lottery Service.
Essential Beverage Holdings has acquired the entire shareholding of iGaming subsidiary Internet Gaming Limited for R92.5 million. Vegas International SA has a 20% stake in the subsidiary and will receive the proportionate payment.
Essential will dispose its current business operations and will apply to the JSE to change its business to operating Internet casinos and to change its name to Internet Casinos Limited.
iGaming`s rationale for the sales is to focus on its core business of selling its Internet gaming software and licensing Web sites for other Internet gambling players from which it derives income in the form of royalty fees.
Management says the sold subsidiaries may have been in conflict to licences of its main business.
iGaming will shortly release its year-end results to February 2001, after which it will change its year-end to June.
It will also split its share on a ten-to-one basis in order to give access to a broader base of investors and increase tradability and liquidity of the share.
News of the sales moved the iGaming share price up 50c or 5.88% to 900c in early trade and Oxbridge bounced up 1c to 5c.
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