Canny Irish business leader Dermot Desmond, who has investments in
Paddy Power, Betdaq, London City Airport and a major shareholding
in Glasgow Celtic Football Club is reported by E-Gaming Review as
possibly involved in buying a 10 percent stake in the Isle of Man
e-cash processor Neteller.
It is thought Desmond bought the stake via a purchase of contracts
for difference (CFDs) to avoid having to publicly announce the purchase.
Any company is bound to make a statement to the London Stock Exchange
should anyone purchase more than 3 percent of the company.
EGR reported that rumors surfaced last weekend that Desmond had acquired
an interest in Neteller. These seemed to be confirmed on Monday when
the company announced that Man Financial, a major CFD provider, had
an interest in 10.03 percent of Neteller.
“The sign of CFD interests normally surfaces with a notice
of holdings with either Man Financial or Cantor Fitzgerald on it,”
said one analyst. “You would use contracts for difference
(CFDs) if you didn’t want the takeover panel to know about your
interest."
Whether Desmond has bought into Neteller for a short-term gain or
for a longer term interest, it is still “good news” for
the sector, added the analyst. A spokesperson for the Dublin-based
betting exchange Betdaq refused to comment on the story.
Desmond certainly can afford the purchase, with the companies in which
he has an interest performing well. Paddy Power in particular is expanding
fast and its last 6 month results showed turnover up 27 percent to
Euro 878 million with growth across all channels. Gross win was up
30 percent to Euro 105 million boosted by 83 percent increase in win
from online gaming and FOBTs. Operating profit was up 11 percent to
Euro19.6 million and profit before tax was up 12 percent to Euro 20.5
million.