Business
Settlement of Litigation
Settlement of Litigation.
About this update from Livermore Investments Group Limited
[{"type":"text","content":"\n Empire Online Limited\n14 February 2006\n\nProposed settlement of litigation with PartyGaming Plc ('PartyGaming') and\nassignment of related 'skin' activities subject to Shareholder approval\n\nHighlights\n\n • Settlement of litigation with PartyGaming\n\n • Assignment of Empire Online's PartyGaming related 'skin' operations to\n PartyGaming\n\n • $250 million cash payment\n\n • Company reaffirms expectation that its continuing businesses will\n contribute $37 million of net profit in the year ended 31 December 2006.\n\n • Proposals conditional upon shareholder approval - voting authorities in\n favour of the proposals have been obtained from shareholders holding in\n aggregate 56.0% of the ordinary shares in the Company\n\nNoam Lanir, Chief Executive of Empire Online, said today:\n\n'This transaction removes the uncertainty of litigation between Empire Online\nand PartyGaming. It puts the Company on a stronger footing and will enable\nmanagement to focus on growing its continuing businesses. We will consider\ncarefully how to use the net proceeds from this sale to the maximum benefit of\nshareholders.'\n\nEnquiries:\n\nEmpire Online Limited +357 (2) 5 847 700\nNoam Lanir, Chief Executive Officer\nAndrew Burnett\n\nNumis Securities Limited +44 (0) 207 776 1500\nJag Mundi, Head of Corporate Finance\nLee Aston, Director, Corporate Finance\n\nCitigate Dewe Rogerson +44 (0) 20 7638 9571\nSimon Rigby\nSarah Gestetner\n\n\nProposed settlement of litigation with PartyGaming and assignment of related '\nskin' activities subject to Shareholder approval\n\nIntroduction\n\nThe Company announces that it has today entered into an agreement with\nPartyGaming to settle all outstanding litigation between them and effectively to\nsell the business and assets of its PartyGaming 'skin' activities (i.e.\noperations designed to direct players to one of PartyGaming's gaming platforms)\nto PartyGaming in return for a cash payment of US$250 million, payable on\ncompletion.\n\nUnder the terms of this agreement the existing contractual arrangements with\nPartyGaming will be terminated and Empire Online will assign to PartyGaming its\ninterests in certain domain names related to the PartyGaming 'skin' activities\nincluding 'empirepoker.com' and 'aceclub.com'.\n\nThe agreement is conditional upon the approval of Empire Online shareholders by\n...