Freddy Robinson's getting out of the casino business

Freddy Robinson's company Miloumor (TASE:  MILO) has signed an agreement to sell all its holdings in Shahar Hamillennium (TASE: SHML) to Queenco (TASE: QNCO), which is controlled by Igal Zilka.

Miloumor's profit on the deal could be as high as NIS 300 million.

Shahar Hamillennium owns a number of casinos in Greece, headed by the Lutraki casino.

Miloumor said that it had decided to exit its holdings in Shahar Hamillennium while taking advantage of the London flotation of Recido - its joint subsidiary with Queenco. Recido is expected to be floated inside three months.

Miloumor is selling its entire 46% stake in Shahar Hamillennium to Queenco, which will subsequently own 56% of Shahar Hamillennium. The price will depend on the valuation at which Recido is floated.

The owners hope to float Recido at a company value of 500 million euros.

However, the parties stipulated that if the subsidiary's initial public offering does not take place within a year, then Queenco will pay Miloumor at least NIS 190 million, reflecting a minimum price of NIS 30 per share. In that case Miloumor's profit would be NIS 120 million, at least.

To date Miloumor has sold NIS 110 million worth of Shahar Hamillennium shares, off the floor. Its total capital gain from Shahar Hamillennium could therefore reach as high as NIS 410 million, assuming the plans for Recido work out.

Miloumor chief executive Freddy Robinson commented today that the decision to leave the gambling business, after 11 years, resulted from a feeling that the company had extracted what it could from the industry.

He added that since he does not directly manage the casinos, merely owns a shareholding, he feels he found the right time and business opportunity to maximize profits.