Swedish firm Cherry AB has announced the issuing of secured bonds with a total value of up to $146 million in order to help it complete its previously agreed deal to fully purchase fellow online casino operator ComeOn Malta Limited.
Stockholm-listed Cherry AB operates over a dozen online gaming domains including CherryCasino.com, SunnyPlayer.com and SveaCasino.com and spent approximately $85 million in July to acquire a 49% stake in ComeOn Malta Limited before exercising the option for the remaining share in its smaller rival in December.
“The liquidity is intended to fund the acquisition of the remaining 51% of ComeOn Malta Limited’s shares,” read a statement from Cherry AB. “The bonds are issued under the existing bond loan maturing on July 11, 2020.”
Cherry AB declared that the bonds are to be released “with a rate of 104.5 of nominal amount corresponding to an annual coupon equivalent to 7.58%” while revealing that Oslo-based investment bank ABG Sundal Collier had acted as its financial advisor in the deal with support from Roschier Law Firm.
“As a result of this acquisition and strong organic growth, Cherry AB is expected to triple its revenues and become the third largest Nordic-focused private sector gaming company,” read a December statement from Cherry AB. “The acquisition is also expected to deliver a sound basis for continued international expansion with strong brands.”
Cherry AB moreover stated in December that ComeOn Malta Limited holds a “strong position” in its main geographic markets of Norway, Sweden and Finland thanks to a successful multi-brand strategy that includes domains such as ComeOn.com, CasintoStugan.com and GetLucky.com. It further proclaimed that approximately 25% of the Malta-based operator’s annual revenues come via sportsbetting from sites such as MobileBet.com and MobilAutomaten.com.
“We are very pleased to be able to now conclude the acquisition of ComeOn [Malta Limited], which means that we considerably strengthen our position in the market,” read a December statement from Fredrik Burvall, then President and Chief Executive Officer for Cherry AB. “Together we will create an entrepreneurial-driven gaming company where both Cherry AB and ComeOn [Malta Limited] have significantly stronger organic growth than the market and the acquisition improves the group’s results considerably.”