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Greek betting firm OPAP's board approves licence deal
Reuters - 30/09/2011 10:20:12
* Approved govt deal on concession, videolotto licence
* Agreed to pay 935 million euros for the licences
* Shares up 2.3 percent
ATHENS, Sept 30 (Reuters) - Greek betting company OPAP on Friday confirmed its board approved a deal with government to pay 935 million euros to extend its monopoly and buy a new videolotto licence.
An OPAP official had told Reuters late on Thursday the board gave initial approval to the multi-billion euro deal with the government. (news)
"At yesterday's meeting, OPAP's board ... decided to accept the proposals of the Greek state", OPAP said in a bourse filing.
To renew its concession by 10 years until 2030, OPAP agreed to pay 375 million euros and a 5 percent fee on its games' gross profit from 2020 to 2030.
Partly state-owned OPAP, one of Greece's most precious listed assets, is key to the country's efforts to raise 4 billion euros from privatisations this year and convince its international lenders it is meeting its obligations to receive a new tranche of an EU/IMF bailout.
OPAP said the cost for the videolottery terminals will be 560 million euros, with 474 million paid upfront after the deal is signed. The rest will be paid two years after the VLTs licence is put into force.
At 0756 GMT, shares in OPAP rose 2.3 percent to 7.72 euros, outperforming the Athens bourse general index which shed 0.50 percent.
"The price is a bit higher that what was suggested but the deal is positive since it adds value to the firm and improves visibility," said HSBC analyst Paris Mantzavras.
OPAP said there were still some parts of the deal that needed to be finalised.




* Approved govt deal on concession, videolotto licence
* Agreed to pay 935 million euros for the licences
* Shares up 2.3 percent
ATHENS, Sept 30 (Reuters) - Greek betting company OPAP on Friday confirmed its board approved a deal with government to pay 935 million euros to extend its monopoly and buy a new videolotto licence.
An OPAP official had told Reuters late on Thursday the board gave initial approval to the multi-billion euro deal with the government. (news)
"At yesterday's meeting, OPAP's board ... decided to accept the proposals of the Greek state", OPAP said in a bourse filing.
To renew its concession by 10 years until 2030, OPAP agreed to pay 375 million euros and a 5 percent fee on its games' gross profit from 2020 to 2030.
Partly state-owned OPAP, one of Greece's most precious listed assets, is key to the country's efforts to raise 4 billion euros from privatisations this year and convince its international lenders it is meeting its obligations to receive a new tranche of an EU/IMF bailout.
OPAP said the cost for the videolottery terminals will be 560 million euros, with 474 million paid upfront after the deal is signed. The rest will be paid two years after the VLTs licence is put into force.
At 0756 GMT, shares in OPAP rose 2.3 percent to 7.72 euros, outperforming the Athens bourse general index which shed 0.50 percent.
"The price is a bit higher that what was suggested but the deal is positive since it adds value to the firm and improves visibility," said HSBC analyst Paris Mantzavras.
OPAP said there were still some parts of the deal that needed to be finalised.