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JUPITERS LIMITED
ABN 78 010 741 045
Level 9, Niecon Tower
17 Victoria Avenue
PO Box 1400
Broadbeach QLD 4218
Australia
Telephone 07 5584 8900
Facsimile 07 5538 6315
30 September 2003
SALE OF CENTREBET BUSINESS
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Jupiters Limited ("Jupiters") has today entered into a contract for the sale of
the business of Centrebet Pty Ltd ("Centrebet") to the SportOdds Group
("SportOdds") for $46.55 million.
As outlined in the Scheme Booklet distributed to Jupiters' shareholders earlier
this month, Jupiters intends to distribute the net proceeds of the sale to its
ordinary shareholders by way of a special fully franked dividend. The payment of
the dividend is conditional on the Ordinary Share Scheme proceeding.
The gross proceeds of the Centrebet sale, which is used in determining the "Net
Centrebet Proceeds" distributable to Jupiters' ordinary shareholders, will be
subject to a number of deductions in respect of expenses of the sale and certain
adjustments in addition to the usual adjustments such as for unresolved bets and
costs related to ensuring business continuity. Those deductions will include an
amount of $5 million which Jupiters has agreed to pay TABCORP Holdings Limited
("TABCORP") in return for TABCORP's consent to certain terms of the Centrebet
sale which are less favourable to Jupiters than those contemplated by the sale
parameters originally agreed between TABCORP and Jupiters.
Completion of the sale is expected to occur on 27 October 2003.
CONDITIONS OF THE SALE
Conditions of the sale include:
- - the issue of a Northern Territory Sports Betting licence to SportOdds;
- - there being no termination or suspension of Centrebet's Northern Territory
and UK Sports Betting licences; and
- - SportOdds satisfying its draw down conditions to its approved finance
facility.
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CENTREBET DIVIDEND
Subject only to completion of the sale, Jupiters proposes to declare a special
fully franked dividend to disburse the net Centrebet proceeds to its
shareholders. After payment of the fee to TABCORP and other adjustments
(including expenses of sale such as capital gains tax), the dividend is expected
to be in the range of 14 to 17 cents per Jupiters ordinary share, subject to a
number of variables which can only be determined at completion of the sale and
others which will depend on the trading results of Centrebet up until that date.
FUTURE FLOAT OF COMBINED CENTREBET/SPORTODDS BUSINESS
SportOdds has undertaken to procure that if it floats the Centrebet/SportOdds
business within three years from the date of sale of Centrebet to SportOdds that
it will offer all Jupiters ordinary shareholders, as at the record date of the
Centrebet special fully franked dividend, an opportunity to subscribe for shares
in the float.
ABOUT SPORTODDS
SportOdds is Australia's largest, privately owned sports betting company. Its
principals, Con and Peter Kafataris, have between them over 60 years experience
as successful on-course bookmakers.
SportOdds has licences in Canberra, Western Australia and the United Kingdom,
with its administration headquartered in Sydney. Together with its Australian
operations, the SportOdds group currently employs 100 staff and has over 35,000
registered clients.
Jupiters' shareholders can lodge, amend or withdraw proxies up to 5.00 pm on 22
October 2003.
For further information, please contact:
Mr Rob Hines Mr Chris Photakis
Managing Director & Chief Executive Officer KPMG
Jupiters Limited (acting for SportOdds)
Telephone: +617 5584 8900 Telephone: +612 9335 7930
Mr Paul Binsted
Citigroup Global Markets Australia Pty Ltd
(acting for Jupiters Limited)
Telephone: +612 8225 4672
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