“Ouch, that hurts,” was what Miloumor Ltd. (TASE: MILO) controlling shareholder Freddi Robinson probably thought about the upcoming flotation by Playtech Cyprus Ltd., which must have given him heart twinges. Four years ago, Miloumor was a shareholder in Playtech’s controlling shareholder, NAV New Age Investments Ltd. Robinson, like the controlling shareholders in Shrem Fudim Kelner & Co. (TASE: SFK), and Gibor Sport Holdings Ltd. (TASE: GISP) controlling shareholders Eitan Eldar and Roi Gil, did not believe in Teddy Sagi’s Internet venture. Robinson sold his 5% stake in NAV to Sagi for what in retrospect was the negligible sum of NIS 3.9 million. Had Robinson believed in the potential of online gambling he would indirectly own $30 million worth of shares in Playtech.
A lot of water has flowed under the bridge since then, and Playtech, which develops software for operating and managing online websites, is due to complete its IPO at an expected company value of $900-980 million on the London Stock Exchange in two weeks. Playtech shareholders, led by Sagi, are expected to sell $240 million worth of shares, with another $60 million going to the company. NAV, controlled by Sagi, owns 68% of Playtech, which means that he can expect to make $160-165 million from the IPO.
Robinson’s slight heart twinge from the upcoming flotation of Playtech, as well the successful IPOs of Israeli companies Empire Online Ltd. (AIM: EOL) and 888 Holding plc (LSE:888) probably led him to try his luck in the online gambling industry.
Robinson is currently a shareholder in the Loutraki Casino in Greece, considered one of Miloumor’s most successful investments. Miloumor subsidiary, Miloumor Trade and Communication Ltd. (TASE:MLTR today announced that it has signed an MOU with PlayAlyOver, a software company registered in Limossol, Cyprus, under which the two companies would set up a company to operate a gambling website using the Internet and wireless.
Miloumor Trade said the new company would operate in a number of target countries in Central and Eastern Europe. The gambling websites, or the cellular applications to be developed, will be based on software developed by the Cypriot company.
Published by Globes [online], Israel business news - www.globes.co.il - on March 6, 2006