Cassava Enterprises, the parent company of 888.com, has reportedly begun preparations for a widely expected flotation on the main market of the London Stock Exchange in the later half of 2005.
The Financial Times reported this morning that Cassava had retained investment bank Credit Suisse First Boston to handle the float, which could be worth as much as US$1.8bn.
The valuation would suggest profits at Cassava are in the region of US$200m.
John Anderson, chief executive of Cassava, has never denied the firm had long term plans to list on the London Stock Exchange, but has so far failed to confirm any definite date.
When he spoke to eGaming Review last month he said the firm would “make a decision when it is right for us".
But it seems the firm has recognised current investor appetite for online gambling stocks is at an all time high with both Sportingbet and NETeller shares trading at record levels.
And the potential listing will fuel speculation it plans to relocate to London if the long awaited Gambling Bill becomes law later this month.
It would also be a lucrative payday for Cassava’s majority shareholders the Israeli brothers Avi and Aaron Shaked, who own around 70% of the firm.
The other major shareholders are software developers Ron and Shai Ben-Yitzhak, who co-founded the firm along with the Shakeds in the mid 1990s.
However, Cassava is unlikely to be the first big eGaming name to go public in 2005 with the parent company of Party Poker expected to list in June.
Party Gaming will complete its strategic review in May and is predicted to opt for a US$5bn listing on the London Stock Exchange.
source : egr magazine
