Cherry could be taken over for €892 million

An independent bid committee for Cherry AB has suggested its shareholders accept an €892 million takeover offer.

Sweden.- Online gaming company Cherry could soon be acquired by new investors as an independent bid committee has recommended its shareholders accept an €892 million offer, which amounts to €8.45 per share.

The committee had been set up by Cherry and suggests the company should be taken over by EE Intressenter, a company owned by a consortium that acts as manager for several companies through Bridgepoint Advisers. The offer would be accepted after December 20th, when the period for it is expected to begin.

“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,” Mika Herold, partner at Bridgepoint Advisers, said in a press release and added: “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.”