Cherry\’s board decided to call in its convertible loans and options in the betting exchange Betsson, obtaining 100% ownership. Cherryforetagen has already paid SEK 28.3 million through a combination of share purchases and convertible debenture loans. A remaining SEK 3.4 million, which will be paid now in cash, will give Cherry 71% ownership. The remaining 29% of Betsson will be acquired at market value determined by a valuation from two independent external parties at the end of March 2005. “By investing in Betsson at an early stage, we can now acquire the entire company at an advantageous price for Cherry’s shareholders. We believe that the type of gaming that Betsson represents – a betting exchange – is facing continued strong growth. Players in large numbers are beginning to discover that other forms of gaming are more expensive, especially those that are state-run,” Pontus Lindwall, Managing Director of Cherry and Net Entertainment, said. “This is a very good deal for Betsson since we are getting an owner that has the resources to really develop Betsson’s potential. The current market situation is perfect for quickly establishing Betsson as a leading betting exchange. With an experienced owner such as Cherry, we are in a great position to achieve this,” Anders Holmgren, Managing Director of Betsson, commented. Shares in Cherryforetagen were up 25.27% today.
Cherryforetagen acquires Betsson
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