Japanese bank faces loss on Betfair listing
Sunday 18 July 2010
Softbank, a Japanese bank, is facing major losses on its 23 per cent stake in Betfair, the online betting exchange which is hoping to float in the autumn.
The British business, one of the UK’s few successes during the dotcom era, has hired Goldman Sachs and Morgan Stanley to advise on the listing, which could value the company at £1.5bn. However, that price tag is understood to be at the top of most industry watchers’ expectations. Softbank bought its near one-quarter stake in Betfair for £355m in 2006, valuing the business at £1.54bn. When asked if the company would be valued at £1.5bn, a senior Betfair source replied: “I wish.”
A banker close to the listing plans added: “Selling for less than you bought it for never makes anybody look good. Softbank does not necessarily have to sell [during a flotation] as long as there are enough shares on offer to make it interesting. But nobody knows how much Betfair will be worth. It depends on market conditions and they are volatile at the moment.”
The uncertainty surrounding new flotations has been starkly illustrated twice this month. Fairfield Energy pulled its £330m listing on the London Stock Exchange last week after failing to drum up enough interest from investors. Fairfield admits that it is unlikely to try again until 2011.
Loss-making online grocer Ocado is facing a nervous weekend as investors decide whether to back its controversial flotation, as the company faces a barrage of criticism from City analysts who are sceptical that it can ever become profitable.
Betfair first considered floating in 2005. Sources close to the group said that it has been growing strongly lately and is investing overseas. Betfair declined to comment and Softbank did not return calls.
- 1 Paul Scholes: Manchester City were so good against Liverpool I felt like turning the television off
- 2 Notting Hill Carnival: Woman shares selfie after being ‘punched in face for telling man to stop groping her’
- 3 Homer Simpson takes the ALS ice bucket challenge because of course he does
- 4 Hello Kitty is not a cat after all
- 5 Botched ice bucket challenge leaves man critically injured after plane drops hundreds of gallons of water
Kensington flat branded ‘uninhabitable’ by estate agent on sale for a bargain £600,000
America’s new apartheid: Prosperous white districts are choosing to break away from black cities and go it alone
Arizona shooting: Gun instructor accidentally killed by nine-year-old girl with Uzi
Notting Hill Carnival: Woman shares selfie after being ‘punched in face for telling man to stop groping her’
Hello Kitty is not a cat after all
Exclusive: We share blame for creating 'jihad generation', says Muslim strategist
Robin Williams Emmys tribute led by Billy Crystal criticised for including 'racist' joke about Muslim woman
The Rotherham child abuse scandal is a tale of apologists, misogyny and double standards
Scottish independence TV debate: Pumped-up Alex Salmond bounces back in bruising second round against Alistair Darling
Do you realise just how foolish the UK looks?
Ukip Douglas Carswell defection: Tory MP jumps ship to join Nigel Farage
- < Previous
- Next >
iJobs Money & Business
Highly Competitive Salary: Austen Lloyd: CITY - An excellent new instruction w...
£500 per day: Harrington Starr: SQL Server Developer SQL, PHP, C#, Real Time,...
£600 per day: Harrington Starr: C#.NET Developer C#, Win Forms, WPF, WCF, MVVM...