PartyGaming Plc. founders sell off more shares

The four founders of PartyGaming Plc., the world's largest online gambling company and owner of PartyPoker.com, sold off more of their stock Wednesday, walking away with £232 million.

Dresdner Kleinwort Wasserstein (DKW) represented Anurag Dikshit, Vikrant Bahrgava, Ruth Parasol and her husband Russ DeLeon, along with another shareholder Nitin Jain, selling about 5% of the company's stock.

Originally the founders had hoped to sell 8% of the company's stock at 119p to 120p per share. The stock ended up selling at 116p per share which is the same price it floated at one year ago.

All four founders have already made millions with the flotation of the business. Parasol, a former porn baroness, and DeLeon each sold £218 million worth of shares when the company was floated last summer. Dikshit sold £420 million worth of stock at the same time, and Bhargava made £61.5 million by selling shares when the company listed.

After Wednesday's sale, Dikshit still holds 28.95% of the business, DeLeon and Parasol each have 14.87% of the business and Bhargava still holds 6.96%. Together the four still control about 65.7% of PartyGaming.

To retain the company's tax advantages in Gibraltar, the founders must keep a majority stake until 2010. If they want to sell below the majority holdings, they have to give PartyGaming twelve months notice.

The founders have agreed not to sell any more shares until after Sept. 5, 2006, when PartyGaming announces its half-year results. They're currently locked into their holdings until the end of December, so they would need approval from DKW if they want to sell any more stock between Sept. 5 and the end of the year.

News Added: 08 June, 2006

Number of views : 926