The online gaming market in the north of Europe is getting ready for a massive shake-up! Indeed, the Swedish online gaming company, Cherry AB received a huge takeover bid (9.19 billion SEK (£810,052,550,000.00) from the Private British equity firm Bridgepoint. And what’s more, the British group said it could pay the whole amount cash.
A special committee was set up solely for this single purpose which gave the green light to the new deal. Its members recommended accepting the offer made by the British Group. Even if the signing of the agreement still hangs in the air, the markets took notice in no time.
Shortly after the publishing of the board’s findings, Cherry shares reached almost record highs. In fact, the markets valued the company only higher at the end of last November.
Almost Record Value
In essence, the company’s Chairman Morten Klein was also part of the bidding group. And this sole fact justified the involvement of the independent committee. Still, its members agreed to recommend to the shareholders to accept the bid of 87 SEK (£7.66) per share.
Since 1963, the Cherry Group operates in five different business areas. That includes Online Gaming and Marketing sector to Game Development and Technology. Also, it has a Restaurant Casino division, as well.
“Many of the opportunities and challenges are easier to approach in a private setting. And with a more favourable capital structure, too” said Mika Herold from the bidding group.
All and all, the markets reacted favourably to the news. Indeed, Cherry shares, traded on the Nasdaq Stockholm, rose 18.3% to 85.8 SEK. These levels are close to the company’s record value from last November.
Still, the future makes up for some concerns. Especially since Sweden became a regulated market, which means that future earnings are less predictable. For now, this story is still unfolding… And yet, one question remains, will Britain eat Swedish Cherry in 2019?