Codere would have to pay William Hill in case of selling the sportsbook subsidiary

At the beginning of the year, Codere paid one euro to its then partner William Hill to take control of its 50% in the sportsbooks joint venture: Victoria. Both companies alleged at that moment that it was a symbolic price that benefitted both companies.

On one hand, the sale allowed the British company to focus in the online business, where it saw more growth opportunities. On the other hand, the society controlled by Martínez Sampedro family became the only shareholder of a young society, because sportsbooks are still an activity pending to be developed on the whole Spain.

However, the agreement between both companies was not as simple as it seemed. Codere acknowledges the extension of its auditory, issued to CNMV, saying that if in the two following years it sells Victoria shares acquired from William Hill, it will have to renegotiate with the UK group. So, as long as the amount was superior to the euro paid to William Hill, it will have to pay it the difference between the future and hypothetical sale price and the euro agreed in January.

The possibility to find a partner that supports Codere in its business center is not remote. The Madrid company has acknowledged in several occasions its predisposition to admit an investor in the capital.

The bingo and casino operator also explains CNMV that the reasonable valuation that the spostsbook subsidiary granted last January was of 33 million euros. A valuation that was different from the one paid by William Hill for its 50% of the shares. So it entrusted an independent expert to value this business. Based on the evolution during the first semester of 2010, and in the "situations that are estimated to be more probable in the future", the expert assessed the reasonable value between 22.6 and 24.7 million euros.

The company justifies this reduction saying that the valuation of the expert considered the evolution in 2010. According to the latest data communicated by the company to CNMV –corresponding to the first quarter, it registered an operating income of 0.8 million euros.