Cassava Enterprises (Gibraltar) Ltd., owned by Ari and Aharon Shaked and Shai and Ron Ben Yitzhak, is heading for the stock market. "The Financial Times" reported yesterday that Cassava, of the world's biggest Internet gambling companies, has hired Credit Suisse First Boston to prepare a flotation of 888.com , valuing its online poker room at up to $1.6 billion (£836 million). The flotation is expected in the second half of the year.
Cassava, registered in Gibraltar, is headed by John Anderson. Cassava's parent company, VHL, is also registered in Gibraltar. VHL is controlled by two pairs of brothers, Ari and Aharon Shaked and Shai and Ron Ben Yitzhak, who own 70% of the company, with the rest held by the company's management.
Cassava's best-known brand in 888.com. It has three other gaming sites: Betmate UK, Casino-on-Net and Pacific Poker. The sites are barred to Israeli surfers, as part of a strategic decision by Cassava, due to legal uncertainty in Israel regarding gambling.
VHL told "Globes" in response, "As a matter of policy, VHL does not normally confirm or deny rumors about talks or business contacts, whether they exist or not."
The flotation of the company will naturally force Cassava to disclose its figures to the public. The company's annual turnover has reportedly exceeded the $1 billion threshold, and its profits are estimated at $200-300 million.
A gaming license from Antigua
The Shaked and Ben Yitzhak brothers founded VHL seven years ago, after Aharon Shaked, a dentist by training, was attending a dentists convention in Monte Carlo. He told his brother, Avi, an engineer, about his idea of founding an online gaming company. Avi knew the Ben Yitzhak brothers. After formulating the set-up plan, the four men took out loans, bought a gaming license in Antigua for $100,000, and set up the company.
The Shaked brothers, originally from Netanya, have other businesses in Israel and overseas, including the family real estate company, Yosef Shaked and Sons, which barely operates any more, a technology company in the US, and biotechnology companies in Israel.
Shai Ben Yitzhak, a software engineer by training, developed the technology platform used by the online casinos. In 1998, he, his brother Ron, and the Shaked brothers, founded Random Logic Ltd. , based in Beit Lowenstein in Tel Aviv. Random Logic has developed interactive computer software for Internet gaming, and other online platforms. This software is the foundation for Cassava's online gaming sites.
Published by Globes [online], Israel business news - www.globes.co.il - on March 17, 2005