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Sweden – Enlabs makes mandatory offer to acquire Global Gaming

By - 22 September 2020

Enlabs has made a mandatory public offer to secure the remaining shares in Global Gaming, after previously taking its holding to a 66.7 per cent stake.

The offer value for the remaining shares in Global Gaming is SEK 149.72m, equating to valuing all shares in the company at approximately SEK 450m.

Under the terms of the offer, Global shareholders will have the opportunity to exchange their shares in for SEK11 in cash, and 0.36 shares in Enlabs. They may also accept a payment comprising a 50 per cent cash consideration and 50 per cent Enlabs shares.

Enlabs, which says that will not increase the offered consideration, will see the board of directors of Global Gaming, or an assembled independent bidding committee, publish its opinion no later than two weeks before the expiry of the acceptance period on November 2.

Enlabs is of the opinion that the global market for iGaming services is currently undergoing extensive changes, which justifies continued sector consolidation. Furthermore, in line with previous communication to the market, the company believes that acquisitions are a central part of its continued expansion following its purchase of a majority stake in iGaming operator Shogun Group earlier this month.

Enlabs believes that Global Gaming has a strong market position through the casino brands that Global Gaming holds primarily in Finland, but also in Estonia and some other countries. Enlabs assesses that Global Gaming conducts operations that are strategically complementary to Enlabs’ existing operations, where Estonia is a main market and Finland is a growth market.

Furthermore, Enlabs sees that Global Gaming’s brands have the potential to be launched in Enlabs’ current main markets Estonia, Latvia, and Lithuania, as well as in certain geographical markets where neither Enlabs nor Global Gaming are active today, which Enlabs considers to be potential growth markets, such as Ukraine. In addition, Enlabs views positively the possibility of enabling further geographical expansion for Enlabs’ own brands through the acquisition of Global Gaming.

Enlabs also assesses that economies of scale and cost savings are expected to arise by operating Enlabs’ and Global Gaming’s operations in the new group. Enlabs believes there are cost savings and efficiencies regarding overlapping staff functions, as well as knowledge transfer and best practices within for example IT, marketing, and compliance. The cost savings are expected to amount to approximately €5m annually.

The new group is estimated by Enlabs to have the capacity to take on larger projects with higher quality in the future. Larger and more challenging projects also create possibilities for employees to develop in an organisation that can continue to attract talented employees. In addition, liquidity in Enlabs’ share is expected to increase and Enlabs’ position in the financial market is expected to strengthen.

Enlabs has said it supports the current overall strategy and focus of Global Gaming’s operations and that they place great value in the work that Global Gaming’s management and employees conduct, which is important for the continued successful development of the business.

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