There wasn’t much detail to Intertain Group’s (TSX:IT) announcement this morning, but investors are having no trouble filling in the blanks.
After being halted for an hour this morning, shares of Intertain are currently up 8% to $15.99 after the gaming company announced that it was in discussions to make an acquisition in the (C) $1-billion range.
The following was entirety of the press release:
“The Intertain Group Ltd. is in advanced discussions with a third party regarding a significant acquisition of certain assets. As at the date hereof, there is no assurance that the company will consummate the potential acquisition. The potential acquisition is subject to the finalization of definitive documentation and approval of the boards of directors of Intertain and the third party. If successful, the approximate value of the potential acquisition will be in the range of $1-billion (Canadian).
The company will provide a further update regarding the potential acquisition if binding agreements are reached, or if a definitive agreement is not reached.”
In October, Mackie Research Capital analyst Nikhil Thadani predicted more M&A activity for Intertain Group, following its $126-million pickup of online casino player Vera&John group and the $82.4-million acquisition of Mandalay Media, which owned some of the U.K’s most popular bingo websites, including Costa Bingo, Sing Bingo, City Bingo and Fancy Bingo.