Online betting firm Cherry AB has been offered $1 billion to sell itself to an assortment of companies that is operating under the name European Entertainment Intressenter BidCo.
The bid is for SEK 87 per share in cash and comes out to just over $1 billion USD. The purchase would see EEI taking over full control over 100% of the company and delist from the NASDAQ Stockholm. The consortium of companies making the bid consists of Bridgepoint Europe, Prunius Avium, the Klein Group, Audere Est Facere, Betsson CEO Pontus Lindwall, Berkay Reyhan and Murat Can Yuanlioglu. This group currently holds a 47.4% of the stock and controls 37.9% of the voting power in the group.
The period for acceptance of the bid begins on December 20th and runs through January 23rd, during which time the company's shareholders can discuss the merits of a purchase.
Speaking about the deal on behalf of the bidding group Mika Herold said, "We have followed Cherry closely for a long time and have the highest regard for the success and impressive track record that Cherry and its divisional management teams have achieved through driving innovation in the iGaming sector.
"However, we also believe that many of the opportunities and challenges facing Cherry and its subsidiaries are easier to approach in a private setting and with a more favourable capital structure. The changing regulatory environment together with necessary measures to defend and increase Cherry's market share over time, will require significant investment.
"We have presented a financially attractive offer for the shareholders, which is reaffirmed by the support received from some of Cherry's largest shareholders. We are confident that the consortium members will be good stewards for the business and the employees going forward."
The announcement of the news sent Cherry's stock price up 18% as of press time.
Casino Listings News will follow this story and update readers as the purchase attempt progresses.