LONDON - The third-biggest operator of poker websites Ongame is on the verge of appointing advisers for a London float. The Stockholm-based group appears to be undeterred by rival PartyGaming's warnings last week.
"We are looking to float next year and are in negotiations with different investment banks and looking at which one to pick," said Patrik Selin, Ongame's president and chief executive. The owner of the PokerRoom.com site was not overtly concerned about PartyGaming's predictions of tough times, but analysts believe that the final value of the company would depend to a large extent on 888.com's successful floatation.
Mr. Selin said that he was in negotiations with six to seven banks although he declined to name them. It is assumed that UBS, Deutsche Bank, ABN Amro, HSBC and Dresdner Kleinwort Wasserstein are the banks, which are in talks with Ongame. But DKW floated PartyGaming and HSBC is the main name behind 888, therefore analysts concluded that perhaps these banks could withdraw citing a conflict of interest.
Mr. Selin categorically stated that Ongame was not experiencing the same scenario as PartyGaming, "Our pots have increased by 39 percent and 20 percent. We have been growing every month," he pointed out.
Oskar Hörnell and Claes Lidell set up Ongame in 1999. The group is owned by Erik Hörnell and his three sons with 53 percent between them. Mr. Lidell owns 28 percent, while group chairman Bo Johnson has 15 percent in his account.
The company could use 25 percent stock in the float, however Selin stressed that the company was in the business for the long run, "They are here for the long term. We are floating for two main reasons: to be seen as a more serious company and to have shares to make acquisitions."
Posted
on : Sun, 18 Sep 2005 17:50 GMT | Investments News
By : Paula Jenkins
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