888.com float is on but no date given
01.09.2005The intense speculation that Cassava Enterprises is to float on the London stock exchange soon has finally been confirmed by the company today.
Reuters reports that Cassava Enterprises said it intends to seek a full listing on the London Stock Exchange for its online casino 888.com. The Gibraltar-based company confirmed it had appointed London-based HSBC as sole bookrunner, global co-ordinator and sponsor for the float.
The float could value the Internet casino operator at more than GBP 700 million, say informed sources. Cassava runs several online casinos, including 888.com, Pacific Poker and Reef Club Casino.
The flotation is expected to generate big windfalls for the two Israeli families that control more than 90 percent of the company.
Avi and Aharon Shaked own about 70 percent, while the Ben-Yitzhak family owns about 23 percent. The company has 20 million registered member accounts in more than 150 countries.
Cassava said the float would provide money for acquisitions, hiring staff and enable a partial exit for shareholders.
London has become the de facto listing centre for Internet gambling companies, partly because Britain welcomes online gaming.
Rapid industry expansion, helped by better broadband access and the convenience of playing at home, has fuelled revenue growth at the companies hosting the Web sites.
