IPGL Takes 15.8 Percent Stake in Probability

AIM-listed mobile gambling services provider Probability received its newest investor Tuesday as Michael Spencer, chief executive of interdealer broker ICAP, took a 15.8 percent holding in the company.

Spencer, who doubles as the U.K. Conservative Party's treasurer, subscribed to a private placing of 3.3 million shares at 50p each through his holding company, IPGL. All told, Spencer invested £1.7 million.

According to Bloomberg, the 50p price tag came at a 15 percent discount on Monday's closing price.

IPGL -- which also has an indirect shareholding of 20.8 percent in ICAP -- will send its director, Matthew Wreford, to join Probability's board as a non-executive director.

"There is huge potential for growth," Wreford told the Independent. "We looked at a number of mobile gambling businesses, and few can do what Probability can."

Spencer has an active history of investment in the interactive gaming market. IPGL's portfolio includes holdings in Money Gaming Corp., casual gaming site Doof.com and horseracing data provider Turftrax.

IPGL also invested in online bookmaker Blue Square, which it sold to Rank Group in 2003.

The net proceeds of the share placing will be used to provide working capital for Probability.

"Getting this investment is a coup for us . . . because of the added value you get when you have somebody like Michael Spencer giving such a strong signal to the market that this is the business worth paying attention to," Probability Chief Executive Charles Cohen told Reuters.

Cohen added that Spencer had made no indication as to whether he was planning a strategic alliance between Probability and his other gaming assets.

Probability provides mobile casino, bingo and slots games. The company was initially set up to provide mobile lottery games in 2004 as Mlotto.

Currently, Probability has deals in place with Orange, Rank Group and the Sun.

On the London Stock Exchange today, shares in Probability were up 0.63p, or 1.05 percent, to 60.63.