Cherry AB has announced that a consortium led by private equity firm Bridgepoint has made a takeover offer of SEK 9.19 billion in cash. An independent committee of the Swedish gaming company said it recommends shareholders accept the offer of 87 crowns in cash per share.
The announcement comes at the tail-end of what has been a wholly positive year for Cherry. The firm’s last interim report disclosed a 58% year-on-year increase in revenues, while also completing the acquisition of high-profile affiliate company Game Lounge back in October.
Disclosing news of the Bridgepoint bid in a press release, the firm expanded: “EE Intressenter, a company jointly controlled by a consortium consisting of Bridgepoint Advisers Limited acting as managers for and on behalf of the limited partnerships comprising the Bridgepoint Europe VI Fund (“Bridgepoint”), Prunus Avium Ltd, Klein Group AS, Audere Est Facere AS, Pontus Lindwall, Berkay Reyhan and Can Yilanlioglu (the “Consortium”), has today announced a public offer to the shareholders of Cherry to tender all shares in the Company not held by the Consortium to EE Intressenter for a consideration of SEK 87 in cash per share in Cherry (the “Offer”).
“EE Intressenter will not increase the price in the Offer. By this statement EE Intressenter cannot, in accordance with the Takeover Rules, increase the price in the Offer.
“The total value of the Offer, based on all shares of series A and B in Cherry, corresponds to approximately SEK 9,193 million. The Offer is fully financed through a combination of equity provided by Bridgepoint and the other members of the Consortium and debt financing provided by Ares Management Limited.
“The acceptance period for the Offer is expected to commence around 20 December 2018 and expire around 23 January 2019, subject to any extensions.”