Baltic-facing online casino operator Enlabs AB has announced the filing of an official tender that would see it hand over approximately $16.82 million in cash and stocks so as to fully acquire fellow Swedish iGaming firm Global Gaming 555 AB.
The Stockholm-headquartered enterprise used an official Monday press release (pdf) to detail that the mandatory public offer was required after it spent roughly $121,890 late last month in order to buy a further 27.2% stake in the operator behind the Ninja Casino online casino brand. The also firm explained that this transaction took its total interest in the Malmo-based rival to slightly beyond 54% although it has since bought an additional tranche to take its aggregate shareholding up to 66.7%.
Enlabs AB is responsible for the Optibet-branded family of iGaming domains especially popular with players in the small nations in Lithuania, Estonia and Latvia and stated that its proposal values the entirety of the business run by Global Gaming 555 AB at approximately $50.48 million. It furthermore pronounced that the tender will allow its target’s shareholders to swap their individual stakes for ‘a cash consideration’ as well as 0.36 of its own shares or ‘a combination corresponding to 50% as a cash consideration and 50% as a share consideration.’
Moreover the holder of a majority stake in Maltese online casino operator Shogun Group, Enlabs AB described Global Gaming 555 AB as ‘a challenger in the iGaming industry’ that has been ‘delivering innovative and safe gaming services’ in jurisdictions including Finland and Estonia. The enterprise additionally declared that the successful completion of the transaction will allow it to take advantage of ‘economies of scale and cost savings’ reaching as high as $5.8 million a year by merging the pair’s operations, know-how and staff.
Read a statement from Enlabs AB…
“The new group is estimated by Enlabs AB 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 organization that can continue to attract talented employees. Enlabs AB supports the current overall strategy and focus of Global Gaming 555 AB’s operations and places great value in the work that its management and employees conduct, which is important for the continued successful development of the business.”