21st Nov 2005 07:20
Empire Online Limited21 November 2005 21 November 2005 Empire Online Limited ("Empire Online" or "the Company") Offer Update On 3 November 2005, Empire Online announced that it had received an approach inrelation to an offer for the entire issued and to be issued share capital of theCompany. This approach was from PartyGaming plc ("PartyGaming") and wasinitially expressed to be an all share offer, valuing Empire Online at 10 percent. of the value of the enlarged entity. Following a protracted due diligence process and continued delays in thetimetable, PartyGaming has made a revised proposal that is significantlydifferent both in terms of the price and structure and at a level that cannot berecommended. Empire Online as therefore terminated discussions with PartyGaming. The directors of Empire Online ("Directors") have explored whether legal actionmight be taken by Empire Online in relation to damage caused to it by theconduct of companies within the PartyGaming group in separating the poker systemused by PartyGaming players from that of its "skins". Having received legaladvice, the Directors intend to institute and vigorously pursue legalproceedings as soon as possible. Trading statement The Company is committed to continuing to deliver its high growth strategyacross the Empire Online network, the principal elements of which are:* tocontinue growing the number of new real money players across Empire Online'splatforms, using its multiple distribution channels. The Company is adding anaverage of more than 500 new real money players per day across its network sofar in November 2005; * to continue to drive strong growth in new real money players across theCompany's new platforms, namely the Club Dice casino suite and Noble Poker. Asstated in the Trading Update of 18 October 2005, these new brands account for agrowing proportion of Empire Online's new real money players, representing wellover 50% of new real money players signed during Q4 2005; * to investigate commercial strategic opportunities for the Company. EmpireOnline has received several commercial strategic approaches over the past fewmonths and intends to pursue discussions in relation to these approaches. TheCompany's strategy in relation to existing Empirepoker.com players will dependin part upon the outcome of any litigation against PartyGaming. * for the year ending 31 December 2005, the Company expects to deliver netprofit broadly in line with the levels announced by Empire Online on 18 October2005. For the year ending 31 December 2006, (and subject as set out below) theDirectors believe that net profit will be broadly in line with current marketexpectations. The Directors expect that net profit of around $37 million shouldbe generated from its businesses not having any relationship with PartyGaming,including the Club Dice suite, Noble Poker and other businesses. The balance ofnet profit for that year is expected to be derived from Empire Poker. The levelof contribution from Empire Poker could be impacted by the nature of the ongoingcommercial relationship between Empire Online and PartyGaming, other "skins"leaving the "skins'" platform and the outcome of any legal action againstPartyGaming. Noam Lanir, Chief Executive, commented today "Empire Online has in place thefoundations for sustainable long term growth ahead of the market, through itsunique marketing skills and its multiple platforms. I am delighted in the growthwe are seeing in our new platforms and this is testament to the strength of ournetwork. We intend to remain leaders in the online gaming industry and willemploy all our efforts to build and grow value for our shareholders" For further information: Empire Online LimitedAndrew Burnett +44 (0) 20 7638 9571 for Monday 21st November +357 (2) 5 847 700 thereafter Citigate Dewe Rogerson +44 (0) 20 7638 9571Simon RigbySarah GestetnerGed Brumby ENDS This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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