Cherry updates financial information on acquisition of Game Lounge
Cherry AB (publ) – STO: CHER-B.ST – announced 22 December 2017 that the company is acquiring the majority of shares outstanding in the leading affiliate company Game Lounge Ltd. The acquisition is intended to be paid through a combination of equal portions cash and newly issued shares in Cherry AB (publ). Cherry can now announce that the purchase consideration has been determined to approximately SEK 189.2 million, of which the cash portion is expected to amount to approximately SEK 94.6 million.
The purchase consideration for an additional 44 percent of the shares in Game Lounge Ltd that is acquired, will be based on a multiple of 4.5 times the 2017 EBIT pertaining to affiliate operations and 6 times 2017 EBIT for the white label business. Today, Cherry has determined that the purchase consideration amounts to approximately SEK 189,292,750, of which the intended cash portion will amount to SEK 94,646,375, and is intended to be paid by newly issued shares in Cherry AB (publ). The issue price of the newly issued share will be established based on volume weighted average price during five trading days prior to issuance. At an issuance price corresponding to last price paid today, 22 March 2018, of SEK 57.90, the number of newly issued shares in Cherry would amount to 1,634,652.
The cash portion is to be paid no later than 30 April 2018. The new share issue must be approved by Cherry AB’s Annual General Meeting on 9 May 2018, after which the transaction can be completed.
Cherry AB (publ)’s wholly owned subsidiary Cherry Malta Ltd. acquired 51 percent of the shares in Game Lounge Ltd. in January 2015. During its time as part of the Cherry Group, Game Lounge’s development has been strong and stable and Cherry has now chosen to acquire 44 percent of the shares outstanding. Following the acquisition, Cherry Malta Ltd. will hold a total of 95 percent of the shares in Game Lounge Ltd. The remaining portion will be owned by the founders of Game Lounge, who will also remain as the company’s sales manager and CEO, respectively.
For further information, please contact:
Anders Holmgren, CEO: +46 708 607 534, email@example.com
Christine Rankin, CFO: +46 765 399 492, firstname.lastname@example.org
Anders Antonsson, IR & Communications: +46 709 994 970, email@example.com
This information is such that Cherry AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above on 22 March 2018, at 6:00 p.m. CET.
CHERRY IN BRIEF
Cherry is a Swedish innovating and fast-growing gaming company established in 1963. The business strategy is to create shareholder value by owning and developing fast growing and profitable businesses within the gaming and casino industry. Today, Cherry operates through five diversified business areas: Online Gaming, Game Development, Online Marketing, Gaming Technology, and Restaurant Casino. The objective is to grow organically in combination with strategic acquisitions of fast-growing companies. Cherry employs some 1,400 people and has about 6,700 shareholders. The company’s class B share is listed on the Nasdaq Stockholm exchange, Mid Cap segment. More information is available at www.cherry.se.