Big changes could soon lie ahead for Fortuna Entertainment Group after its largest shareholder reportedly revealed that it is preparing to spend big in order to take full control of the Central European sportsbetting operator.
According to a report from the Reuters news service, rival firm Fortbet Holdings Limited already controls 79.8% of Amsterdam-headquartered Fortuna Entertainment Group but is set to launch an offer later this month worth $8.62 per share in order to fully acquire the remaining balance.
Established in 2009, Fortuna Entertainment Group is active in the sportsbetting markets of Croatia, Slovakia, Romania, Poland and the Czech Republic. Reuters reported that the proposed offer from Fortbet Holdings Limited is set to run for a month from January 23 while valuing the target firm at approximately $447.83 million.
According to Reuters, Limassol-based Fortbet Holdings Limited, formerly known as Aifelmona Holdings Limited until a 2013 name-change, is a subsidiary of Czech-Slovak investments firm Penta Investments and its first attempted buyout of Fortuna Entertainment Group during the first quarter of last year led to it increasing its initial 68% stake by a further 11.8%.
As part of the latest takeover attempt, Reuters reported that Fortbet Holdings Limited has proposed de-listing Fortuna Entertainment Group from the stock exchanges in Warsaw and Prague in order to free the operator from the necessity of having to make public disclosures that purportedly leave it at a disadvantage when compared to its competitors. The news service explained that this action would additionally save costs and make it easier for the sportsbetting firm to exploit market opportunities and aggressively pursue future acquisitions.
“[Fortuna Entertainment Group’s] boards fully support and recommend the offer for acceptance and also recommend voting in favor of Fortuna [Entertainment Group] making the de-listing application,” read a statement from Fortuna Entertainment Group cited by Reuters.
Reuters reported that Fortuna Entertainment Group saw its earnings before interest, tax, depreciation and amortization for the first nine months of 2017 increase by 78% year-on-year to just over $34.18 million with the firm seeing the total amounts staked rise by some 69% to just over $1.57 billion.