Cherry AB has acquired 49 percent of shares in ComeOn Malta Ltd (tranche 1) for a total consideration of Euro 80 million. The agreement provides an option for Cherry to acquire the remaining 51 percent (tranche 2) between October 1, 2016 to December 31, 2016 for a further amount maxed at Euro 200 million.
The deal significantly expands Cherry’s market position in the Scandinavia gambling market and provides further opportunity for international expansion, the company said, it is expected to have an “immediate positive effect on Cherry’s casino earnings per share”.
The consideration for Tranche 1 has been paid with 2,901,461 B-shares and Euro 39.7 million in cash – a total of Euro 80 million. The issue of shares has been directed to the sellers of ComeOn and represents a 16.8 percent dilution in Cherry.
“Now we have completed the acquisition of the first 49 percent of ComeOn, we will, together with ComeOn, initiate the work of maximizing our common values and casino customer offerings with the goal to strengthen our common operation. It is important that we and ComeOn clearly schedule the process so that when the final integration takes place it will be both swift and efficient,” commented Fredrik Burvall, chief executive officer of Cherry.
The final and total consideration for the shares in ComeOn will also be paid with a combination of newly issued shares and cash. The cash portion is to be financed with an expansion of the corporate bond, and the price for the new share issue will be calculated as the volume weighted average share price during the fifteen trading days following Cherry’s announcement to exercise the option. ComeOn Malta Limited gambling brands comprise ComeOn, Mobilbet, Folkeautomaten and Casinostugan.
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