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JAXX SE sells lottery business for EUR 12.5 million


JAXX SE / Key word(s): Miscellaneous

08.05.2012 / 08:58


JAXX SE sells lottery business for EUR 12.5 million

Kiel, May 8, 2012 - Kiel-based JAXX SE successfully completed the divestment process for its lottery business. The price of EUR 12.5 million envisaged in the provisional agreement was confirmed by the extensive due diligence investigations, which took much longer than planned.

The lottery business is to be sold to a group of private investors with economic effect from January 1, 2012. For accounting purposes the divestment takes place along with the loss of control with effect from May 1, 2012, as a result of which the group will retain its proceeds up until that point and reduce the price by a corresponding amount. EUR 8.0 million of the purchase price is due immediately, and a further instalment of EUR 1.0 million at the end of the third quarter of 2012. The balance will be paid in the form of a fixed-interest loan granted to the acquirers, with a term of 6 years and quarterly redemption.

The JAXX domains, JAXX brands and JAXX naming rights are also being sold as part of the package, with the result that the financial holding company JAXX SE will need to be renamed. Its change of name to 'mybet Holding SE' is to be resolved at the Shareholders' Meeting on May 24 in Kiel.

The decision to sell off lottery agency business is based on the group's desire to focus systematically on sports betting, casino and poker products, which are largely carried by the mybet brand. The latest market data serves to confirm the strategy of the JAXX Group: the German lottery market continues to contract sharply. After the first three months of 2012, the betting stakes for the traditional 6 from 49 lottery and its extra draws were around 8.2 percent down on the same period of the previous year. Even the new lottery product 'Eurojackpot', launched with great expectations, has fared even worse than feared with stakes of latterly EUR 12.1 million per week, and there is the risk that it could cannibalise the traditional lottery.

By contrast, the market for sports betting in Germany is opening up; according to the latest estimates by market researcher MECN, it is set to grow by more than 200 percent by 2015 to EUR 1.5 billion (gross betting revenue). JAXX was already granted one of the first sports betting licences in Schleswig-Holstein on May 3, 2012.

About JAXX:
JAXX SE, listed in the Prime Standard of Deutsche Börse, is a financial holding company with holdings in international companies in the gaming industry. JAXX currently holds interests in companies in Germany, the UK, Italy, Spain, Austria, Malta and Belgium. JAXX SE has its headquarters in Kiel. The holding companies cover the entire spectrum of the games and gambling industry. Depending on national regulatory structures, they broker or market sports and horse betting, lotteries, and casino and poker games. The best-known brands of the JAXX Group include the sports betting provider mybet. The shares of JAXX SE have been traded at Deutsche Börse since 1999 under ISIN DE000A0JRU67.

Contact:

JAXX SE
Investor Relations & Corporate Communications
Stefan Zenker
Tel. +49 (40) 85 37 88 47
Fax +49 (40) 85 37 88 30
Mail stefan.zenker@jaxx.com



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168531  08.05.2012