Cherry Completes the Acquisition of 49% ComeOn Shares
Published July 24, 2016 by Florin P
Cherry AB spends a combined €80 million for 49% of shares in ComeOn Malta Ltd.
Cherry AB continues its Scandinavian expansion and has strengthened its position by acquiring nearly half of ComeOn shares. By securing 49% and retaining the option of acquiring the remaining 51%, they now also own ComeOn, Mobilbet, Folkeautomaten and Casinostugan. The ComeOn Malta Limited includes all these brands, so the new owners will be able to tap into a significant customer pool.
The company had to pay a total of €80 million, with half of this amount being paid in cash and the rest in B-shares. Cherry AB is not expected to feel the shock of such a significant expansion, even when they acquire the remaining 51%. By using an eclectic mix of cash and newly issued shares, they should be able to maintain the profit estimates for 2016.
Good News for Online Casino Players
This acquisition will make Cherry AB more competitive in the Scandinavian market, while guaranteeing better exposure for ComeOn. The two companies are not the only beneficiaries of the deal, as players are also expected to cash in on this agreement. By harmonizing their common values and working together, they will be able to strengthen their operations and better serve customers. As long as the integration process is swift and smooth, players will start feeling the advantages without any hassle.
Fredrik Burvall, CEO of Cherry announced that the company he represents plans on following through with the acquisition of the remaining 51%. He expressed his enthusiasm for this deal that should advance the interests of both companies and make them a top player in Scandinavia. The new share price will be calculated during the next two weeks and the process is expected to conclude until the end of 2016. Meanwhile, the deal is expected to have an immediate positive effect on the company’s earnings per share, as the deal was received well by shareholders.
