The Swedish online gambling products provider Betsson revealed that it has reached an agreement with NetPlay TV plc over a recommended public cash offer under which Betsson is to acquire the shares of NetPlay. The takeover of the company, which is currently listed on the London Stock Exchange’s AIM market would provide the Swedish company with further expansion in UK, helping the provider to consolidate its presence in the country.
This is an important step for Betsson, as UK offers the largest locally regulated gambling market on a global scale. After the completion of the takeover deal, Betsson will get access to all three brands currently operated by NetPlay – Supercasino, Jackpot247 and Vernons.
The Chief Executive Officer and President of Betsson AB Ulrik Bengtsson emphasized on the fact that each of the above-mentioned brands had a strong offering, and expressed his utter surety that the vast experience of Betsson in casino brands operations would be perfectly complemented by the strong growth and earnings generated by NetPlay. In addition, Mr. Bengtsson explained that the company had a long-term strategy for NetPlay and planned a number of achievements, including significant cost synergies and operational improvements.
Betsson also revealed that its acquisition offer would be brought into effect by means of a court approved scheme which is to be regulated under the provisions of the UK Takeover Code and UK Companies Act. As for the price of the deal, the takeover bid amounts to £26.4 million, or £0.09. Of course, the Swedish company explained that the acquisition offer would be subjected to the approval of NetPlay shareholders. In addition, the High Court of Justice would also have to give its permission in order for the deal to be carried out.
Still, the deal is expected to be finalised in April 2017.
As mentioned above, NetBet is listed on the London Stock Exchange’s AIM market. UK company managed to generate a net revenue estimated to £14.7 million over the six months which ended on June 30th, 2016. Over the same period, the adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) amounted to £1.7 million.
The Board of Directors of UK-based NetPlay, on the other hand, made a trading update, praising the stable performance of the company over the past fiscal year. As revealed by the Board, the company had a strong first half, followed by a “satisfactory” second half of 2016. In addition, NetPlay shared that its business-to-business unit had a satisfactory performance over its first year as part of the company, since it was added to the company’s assets, even in spite of the fact that its results were hurt by the disappointing revenue generated by the business-to-consumer division.
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Olivia Cole
