Consortium makes $1bn bid for Game Lounge owner
Published 18th December 2018
The European Entertainment Intressenter BidCo (EE Intressenter) consortium is seeking a 100% holding in Cherry, with plans to delist from the Nasdaq Stockholm. Should it reach a shareholding of 90%, it plans to pursue a compulsory acquisition procedure of the remaining stake.
The offer of SEK 87 in cash per share values the company at SEK 9.19bn (€893m/$1.01bn). Cherry's independent bid committee has recommended its shareholders accept the bid.
Consortium members include Cherry chairman and founder Morten Klein - Audere Est Facere, Betsson CEO Pontus Lindwall and Hindigo Marketing directors Berkay Reyhan and Murat Can Yilanliogl.
If the initial deal were do go through, the consortium would own 50,100,368 shares in the business, representing around 47.4% of total stock and 37.9% of votes in Cherry.
In addition, the consortium has secured undertakings to accept the offer from shareholders, representing a further 12,298,332 shares, or an 11.6% stake and 28.5% of the total number of votes. As such, the consortium has secured commitments from individuals holding 59.1% of share capital and 66.5% of votes.
Bridgepoint Advisers partner Mika Herold said the takeover will provide much needed financial resources to Cherry at a time of regulatory changes.
“We have followed Cherry closely for a long time and have the highest regard for the success and impressive track record that Cherry and its divisional management teams have achieved through driving innovation in the iGaming sector," he said.
"However, we also believe that many of the opportunities and challenges facing Cherry and its subsidiaries are easier to approach in a private setting and with a more favourable capital structure. The changing regulatory environment together with necessary measures to defend and increase Cherry’s market share over time, will require significant investment."
Image: Best Picko