Swedish gaming group Cherry has received a takeover offer of SEK9.193bn (£802m) from a consortium fronted by Bridgepoint, a British private equity firm.
An independent bid committee set up by Cherry has recommended that its shareholders accept the offer, which amounts to SEK87 per share.
The offer places a 20 per cent premium on the price of Cherry’s B shares as they closed on Monday.
The bid was submitted by EE Intressenter, a company jointly controlled by a consortium consisting of Bridgepoint Advisors, acting as managers for limited partnerships comprising Bridgepoint, Prunus Avium, Klein Group, Audere Est Facere, Pontus Lindwall, Berkay Reyhan and Can Yilanlioglu.
The acceptance period for the offer is expected to commence on December 20, expiring around January 23, 2019, subject to extensions. The bid is conditional on the consortium receiving at least 90 per cent of Cherry’s shares.
Morten Klein, who is part of the consortium, is chairman of Cherry’s board and given that fact, an independent committee was set up two months ago to handle questions relating to the consortium and the offer.
Mika Herold, partner at Bridgepoint Advisers, said in a press release on on behalf of the consortium: "We have followed Cherry closely for a long time and have the highest regard for the success and impressive track record that Cherry and its divisional management teams have achieved through driving innovation in the iGaming sector.
“However, we also believe that many of the opportunities and challenges facing Cherry and its subsidiaries are easier to approach in a private setting and with a more favourable capital structure.
“The changing regulatory environment together with necessary measures to defend and increase Cherry's market share over time, will require significant investment. We have presented a financially attractive offer for the shareholders, which is reaffirmed by the support received from some of Cherry's largest shareholders. We are confident that the consortium members will be good stewards for the business and the employees going forward."
