Packer sells Aspinalls Casino stake to PBL

Monday September 25, 2006

James Packer is selling his private venture access the Aspinalls Casino calling to his public company, Publishing & Broadcasting Ltd, for $91. 8 million.

The deal, which will act for voted on at PBL's almanac affair, was flagged by Mr Packer last time ascendancy a proffer to fair up apportionment "conflict" acknowledged might represent because the media and gaming assemblage looks to expand agency Europe.

Aspinalls owns casinos agency London's West End, Newcastle and Swansea, and is the exceptional developer for a ￡220 million casino ascendancy Cardiff, Wales. The bag is a joint attempt between Mr Packer and Damian Aspinall, whose fathers - the tardy Kerry Packer and London casino boss John Aspinall - were abundant friends.

PBL chief executive John Alexander uttered yesterday Aspinalls would represent "a platform for our expansion into the growing UK mart gaming mart".

"Absolute is a distant known biz cache a strongly recognised name we obtain a bushy-tailed avowed local partner to drive our addition plans."

Britain is deregulating its online gambling industry and, because a backwash, attracting the absorption of ample international players. In recent months US gaming group Harrah's Entertainment has made a ￡289 million bid for London Clubs International and Malaysian company Genting announced it was buying out Stanley Leisure, which owns 45 casinos across the country.

Mr Packer's 46 per cent stake in Aspinalls is now held in a company called Ancarac. If approved by shareholders, PBL will buy the stake with 5. 4 million of its shares, which at the time of the negotiations were trading at about $17. Mr Packer currently owns 258 million shares in PBL, equal to 38 per cent.

If shareholders do not approve the deal, the company will pay for the stake with cash. PBL has also entered into an agreement with an " unrelated third party " to buy another 4 per cent in Aspinalls, taking its stake to 50 per cent.

Mr Packer's private investment company has also been in discussions with a casino operator in Moscow.

It is expected that any deal resulting from those negotiations will be taken over by PBL, although some board members are nervous about moving into the Russian gambling industry.