Bridgepoint Tenders $1 Billion To Cherry AB

The gambling industry is on the brink of a new major acquisition, as UK-based private equity group, Bridgepoint, makes a $1 billion takeover offer to Cherry AB, fast-growing Swedish gaming company.

When converted to Crowns, the country’s national currency, the consortium’s tender amounts 9.19 billion which is among the highest bids in the last couple of years.

However, The Independent Bid Committee of the soon-to-be-acquired company recommended its shareholders to accept the public offer of SEK 87 per share.

The group’s chairman, Morten Klein, said that the Committee was “required to advise shareholders” whose official statement reads:

“In its evaluation of the Offer, the Independent Bid Committee has taken a number of factors into account which they deem relevant, including, but not limited to, the Company’s present strategic and financial position, prevailing market conditions and the Company’s expected future development as well as opportunities and risks related thereto.”

Focused on Investing

As one of the major international private equity groups, Bridgepoint is interested in acquiring market-leading businesses including their subsidiaries. One of the most successful branches of Cherry is Yggdrasil Gaming, who recently signed several agreements with leading operators such as Svenska Spel.

As the report unwraps further details, we learn that the consortium’s members even provided an additional equity source to fund the bid, including debt financing from Ares Management Ltd.

If the board accepts Bridgepoint’s offer, the group would inherit not only an innovator in gaming, media and entertainment, but an entire team of over 865 people and around 9,325 shareholders…

At this moment, the establishment’s shares on Nasdaq Stockholm are rising by 18.3 percent, which is exactly 85.8 crowns per unit.

According to the official source, the acceptance period for the takeover offer is expected to commence around 20 December 2018… however, it expires around 23 January 2019 meaning that the shareholder has to react quickly.

Aiming At 90% of Shares

At the time being, the parent company of Bridgepoint, EE Intressenter, does not own any shares in Cherry AB. The enterprise is jointly controlled by a consortium that consists of Bridgepoint Advisers Ltd, Prunus Avium Ltd, Klein Group AS, Audere Est Facere AS, Pontus Lindwall, Berkay Reyhan and Can Yilanlioglu.

The completion of the agreement would entitle the owner of more than 90 percent of the total shares. More info coming soon…

Source:

“Bridgepoint bids $1bn for Cherry AB”, sigma.com.mt, December 18, 2018.