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CHERRY OFFLOADS MARITIME GAMING BUSINESS
10/12/2012 : CHERRY OFFLOADS MARITIME GAMING BUSINESS
To narrow focus on the online gaming sector
Swedish gaming firm Cherry AB has inked an acquisition deal with Bell Casino AB for the sale and purchase of all shares in Cherry's Maritime subsidiaries Cherry Maritime Gaming AB, Astral Maritime Services Ltd and Cherry Services Ltd to allow the company to narrow its focus on the online gambling sector.
The transaction will be closed during November 2012 and Cherry said it will receive around SEK 38 Million (approx. GBP 3.54 Million) through share purchase considerations, dividend from the subsidiaries and repayment of debt to the mother company. The final share purchase price will be based on the equity as of September 30, 2012.
Emil Sunvisson, managing director of Cherry AB said: "It is not without sadness that we sell the business area Maritime Gaming. Maritime Gaming has been one of Cherry's core businesses for many years with many talented and skilled employees. Profitability in the industry has recently been under intense pressure from competition and a weak economy, especially in southern Europe. We have always had a great respect for Bell Casino as a competent and professional competitor. The sale will create a viable company that is well positioned to achieve profitability. For Cherry, this means a greatly improved liquidity and an increased focus on growth in the Online Gaming sector."
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