UPDATE 1-NetPlay TV says Virgin Media TV takes 9.9 pct option

Tue Apr 7, 2009 9:30am BST

Quotes

   

* NetPlay sees 2008 EBITDA in line with mkt view

* To buy assets of Two Way Gaming for 2 mln stg in stock

* NetPlay to raise 800,000 pounds via pvt placement

* NetPlay shares fall 2.3 pct (Adds details, share movement)

April 7 (Reuters) - British interactive gaming firm NetPlay TV Plc (NPT.L) said on Tuesday Virgin Media Television VMED.O had agreed to buy options to acquire 9.9 percent of NetPlay's shares at a strike price of 18 pence per share.

NetPlay also said it expected earnings before interest, tax, depreciation and amortisation (EBITDA) for the year to Dec. 31, 2008 to be in line with market estimates.

The company signed production and gaming agreements with Virgin Media for an initial period until June 30, 2013, and take over production of the 'Challenge Jackpot' brand, including its website and television channel, NetPlay said in a statement.

NetPlay said it would acquire the business assets of Two Way Gaming Ltd, the provider of the Challenge Jackpot gaming services, for 2 million pounds ($2.95 million) in stock.

The addition of the Two Way Gaming revenue will take the NetPlay's gross monthly bets to over 45 million pounds ($66.28 million), NetPlay said.

NetPlay also said it would raise 800,000 pounds through a private placement of 4.44 million shares at 18 pence each.

At 0921 GMT, NetPlay shares were down 2.3 percent at 21.0 pence on the London Stock Exchange. ($1=.6789 Pound) (Reporting by Austin Lobo in Bangalore; Editing by Gopakumar Warrier)

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