• Cherry Exercises Option for 7.5 Percent of Almor

    16 April 2017

    Cherry exercises option for 7.5 percent of almor

    The business deals that happen in the online gambling world can be very interesting. This is even more the case over the past few years when more companies have been merging in an attempt to beat out competitors, which in turn has led to an upward pressure for companies to get bigger and bigger in order to have a chance in the market. Cherry has recently exercised an option from a previous deal to pick up an additional 7.5 percent of Almor Holding in a similar business deal.

    Adding to 75 Percent

    Back in 2015, Cherry purchased 75 percent of Almor Holding. They retained an option to acquire another 7.5 percent afterwards, and this is the option that they have called. They have 82.5 percent of the company at this point, and a big part of this is because Almor has performed well above what was expected for them at the time of the original purchase. What's so interesting about this is that Cherry has future options to acquire the rest of the company if they so choose, and if things continue the way they have, it's hard to see a situation unfold where they'll decide not to do that.

    Total Cost

    Cherry AB makes a lot of deals like this. Less than a year ago, they purchased 49 percent of ComeOn in a deal that got a lot of attention, and the cost there was in the range of €80 million. The price they are paying for the additional 7.5 percent of Almor is around €1.2 million, but they also have the option to pay it in class B shares of Cherry.

    What Next?

    Picking up more online casinos and companies that offer online slots and other games will probably come for Cherry, but that remaining 17.5 percent of Almor is also a juicy target for them. They have three years to pick up the remaining piece of this company at a rate of five times its EBIT, which is likely to increase if they keep performing the way they have. Regardless, Cherry may elect to wait a little while before continuing this purchase as per the terms of the original acquisition.

    Sources

    Press Release, Cherry Has Called on the Option to Acquire an Additional 7.5 Percent of the Shares in Almor Holding Ltd cherry.se, April 13, 2017


    Related News

    • 23 January 2018

      Snabbare Launched by ComeOn: Near Instant WD, No Registration

      ComeOn Casino, a subsidiary of legendary Swedish casino company Cherry AB (STO: CHER-B.ST) has successfully launched a new casino domain, Snabbare.com. Snabbare means 'faster' in English, for those outside of the region, and aside from the Cherry and ComeOn reputations may be all Swedish players need to know in order to deposit and play. Fast Logins, Withdrawals Under 15 Minutes

      Read full article
    • 22 December 2017

      Cherry AB to Acquire All But 5% of Game Lounge Ltd

      Cherry AB (STO:CHER-B), the owners of Yggdrasil Gaming and ComeOn Casino announced today that they have decided to exercise their option to purchase up to 100% of the shares of internet marketing and affiliate company, Game Lounge Ltd. Cherry Malta Ltd, a wholly owned subsidiary, already purchased 51% of the company in January 2015. The present purchase represents 44% more which will give them a then current total of 95% of all shares.

      Read full article
    • 28 September 2017

      Upcoming Cherry Jackpot Casino Launch Promising

      Soon, players are going to have a new place to play that is tied to the popular Casino Max, and that's the upcoming Cherry Jackpot Casino. This site is looking to launch soon with a lot to offer players, even those from the US. On top of that, they'll offer bitcoin as a deposit and withdrawal method, which adds a ton of flexibility to banking as well. Game Selection and Software

      Read full article