888 is Selling a Latvia Holding to Paf Consulting in Near €30m Deal
Published May 27, 2023 by Lee R
The Baltic region is experiencing a shift in a new 888-Paf deal.
Operating Giant 888 has agreed to see its Latvia holding to Paf Consulting in a deal worth nearly €30m.
The Deal Value
Worth up to €28.3m (£24.6m/$30.6m), the deal calls for Paf to pay an initial €24.0m in cash up front, with another €4.3m to be paid in 2024 upon conclusion of 2023 audited financials.
Domains
The Latvian holding is licensed under both William Hill and Mr. Green brands, with 888 providing brand licencing to extend the usage of these brands within Latvia for a limited period.
Shares
At this point 888 owns 90% of the Latvia entity, which still operates primarily as an independent entity with an individual management team and separate technology platform. The current deal is not expected to impact the Latvia entity’s current organizational operations.
Integration
Conditions for closing the deal include extracting Latvia subsidiary contracts from the 888 ranks and integrating them into the new Latvia subsidiary arm of the PaF contacts.
Closing
According to 888, the deal is set to close in the coming weeks with the proceeds re-invested in general corporate purposes.
Terms
Paf Consulting Abp (Paf) will acquire the shares free and clear on a cash-free, debt-free basis.
888 Head Speaks
The sale was a strategic move designed to reward 888 investors, according to 888 Executive Chair Lord Mendelsohn:
We continually review our asset base to ensure that we are only holding assets that both contribute to our long-term strategy and will maximise value for our shareholders.
Flipping the Holding
Mendelsohn also explained why 888 could let the Latvia holding go:
As a business, our relatively limited exposure in the Baltic region means that the region is not one of our core or growth markets where we prioritise our investments.
Passing the Torch
Mendelsohn expressed confidence that the Latvia entity would continue to flourish under Paf as a valuable Baltic holding.
Paf Expert Speaks
Paf chief executive Christer Fahlstedt was effusive about the deal as he looked forward to expanding his company’s prospects.
We are thrilled to get the opportunity to continue to build on a great Latvian success story.
Paf Priority
Fahlstedt commented on the longer-term goals of the deal as well, saying:
With a long-term perspective, we are convinced that the Latvian market is moving in the direction of increased player protection and thereby a great strategic fit for Paf.
Outlook
This deal looks to provide an asset boon to operating giant 888 while positioning Paf as a stronger player in the Baltic regions and the iGaming sector in general.
