US fund takes a stake in Bwin.Party's capital.

(CercleFinance.com) - Up by around 5% on the London Stock Exchange at 118 pence, the share of the online sports betting company, Bwin.
Party Digital Entertainment, is today benefiting from a US investment fund taking a stake in its capital.

SpringOwl Gibraltar Partners, a subsidiary of the New York fund Cumberland Associates, has announced its purchase of almost 50 million Bwin.Party shares, i.e. 6.1% of its capital from trusts related to Ruth Parasol DeLeon and Russel DeLeon, two pioneers in online betting. Showing its interest in the group, SpringOwl will also request a seat on the group's board of directors.

From an investment viewpoint, this deal could reflect the return to grace of a share that has fallen by over 15% over the past year.

With a market capitalization of almost £1bn, Bwin.Party is one of the big listed names in online gaming, after groups such as William Hill, Playtech, Ladbrokes and Betfair.

At 13.7x expected earnings in 2014, according to Nomura's calculations, its P/E is slightly above the sector median in London, i.e. 12.5x. However, according to the consensus, Bwin.Party's earnings are expected to leap by over 35% in 2014.

The group will publish its full-year results on 13 March.

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