On Monday, 888 Holdings announced it has finalized a sale of its Latvian business shares for £22 million. The sale of the said assets was part of 888’s strategy to put its focus on its main markets.
The gambling and betting company listed on the London stock market shared that it has sold 90% of the shares of its business to Paf Consulting Abp. Thanks to the acquisition deal, Paf will also receive a brand license, allowing the company to operate the websites WilliamHill.lv and MrGreen.lv, which will ensure a huge market presence for Paf.
The full worth of the business that is being sold is estimated to be £24.6 million, with the initial amount that needs to be paid upon the completion of the deal amounting to £20.9 million. The remaining £3.7 million are due to be paid once certain financial metrics have been met. According to 888’s official announcement, the deal is expected to be completed in the upcoming weeks.
Chief Executive Jon Mendelsohn commented on 888’s decision by stating that the company is constantly evaluating its assets, focusing mainly on the businesses that would help 888 to maintain its long-term strategic goals and will ensure the best value for its shareholders. Since 888 has a limited presence in the Baltic region, the company has established that these assets are not included in its core or growth markets, on which 888 prefers to keep its focus and investments.
The divestment of 888’s Latvian assets is to have no impact on the company’s ongoing operations as it will continue prioritizing its biggest markets. After the deal is completed, the Latvian subsidiary will be removed from 888’s supplier contracts and will be integrated into Paf’s contracts, with some alterations in the control consents and dividend payments also being a part of the deal.
Paf Becomes Latvia’s Third Largest Gaming Company Following Acquisition of 888’s Latvian Assets
Mr Mendelsohn added that the Latvian business of the company is locally regulated and boasts a high quality and an amazing team, which has guaranteed the entity a prominent market presence. The 888 Chief Executive also expressed his gratitude towards the Latvian team and shared he was confident that the business will continue its growth under the new ownership with Paf.
Following the deal with 888, Paf is expected to become the third-largest gaming company in Latvia. Thanks to the acquisition of 888’s Latvian business, Paf will operate brands like William Hill and Mr Green. Following the completion of the deal, the two gaming and betting sites will be operated under the same brands as before.
According to Christer Fahlstedt, the current members of Mr Green and William Hill will not notice any difference in their experiences with the brands after Paf takes over the operations of the Latvian business. The acquisition of the new assets would also mean that Paf will launch its new office in Riga where more than 20 employees will be able to join Paf’s family.
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Olivia Cole
