Cherry AB to Finish Game Lounge Limited takeover

Swedish internet casino operator, Cherry AB, has announced the signing of an agreement that’s set to see it spend a maximum of $28.9 million so as to complete its takeover of gaming affiliates firm Game Lounge Limited.

Already holds 95% bet:

The Stockholm-headquartered firm behind CherryCasino.com used an official Wednesday press launch to detail that it now controls 95% of Game Lounge Limited after purchasing 51 percent of their Maltese enterprise’s shares in January of 2015 prior to going to acquire a further 44% stake approximately two decades later.

Performance-related final price:

Cherry is accountable for over a dozen online gaming domains including the likes of SunnyPlayer.com and SveaCasino.com and also owns games programmer, Yggdrasil Gaming Limited. It revealed that the last price for the remaining 5% stake in Game Lounge Limited is to be paid in three installments and also be tied to the goal ’s earnings before interest, tax, depreciation and amortization up to the end of 2021.

Read a statement from Cherry…

“The vendors are employees of Game Lounge Limited. Against this background, the purchase comprises a so-called related-party trade and must therefore be approved by a general assembly in Cherry AB. Cherry AB’s board of supervisors will prepare a written account of their acquisition and obtain an independent valuation statement concerning Game Lounge Limited.

Operations ‘have grown well’:

Cherry declared that it has decided to buy the remaining shares in Game Lounge Limited on account of the fact that the Malta-based company ’s operations ‘have grown well’ and therefore are expected to ‘continue to enjoy favorable market conditions into the future’. It said that the vendors of the 5% stake, who are believed to be local entrepreneurs and business founders Jonas Cederholm and Fredrik Langeland, are to stay in ‘senior rankings ’ and take part in its ongoing ‘incentive application. ’