Cherry AB has signed an agreement to acquire the remaining shares in high-profile affiliate company Game Lounge, thus gaining 100% ownership.
The purchase consideration consists of three parts, with Cherry already owning 95% of the Swedish firm, and can amount to a maximum of SEK 260 million.
The sellers are employees of Game Lounge, and against this background, the acquisition constitutes a so-called related-party transaction. This means that it must be approved by a general meeting in Cherry.
Cherry’s Board of Directors will prepare a written account of the acquisition and obtain an independent valuation statement (fairness opinion) regarding Game Lounge.
The operations in Game Lounge have developed well and Cherry’s Board of Directors makes the assessment that the company will continue to enjoy favourable market conditions into the future and that it is therefore desirable to increase Cherry’s holding to 100%. The sellers will remain in their senior positions, are shareholders in Cherry and also participate in incentive program within the Cherry Group.
Accordingly, the Board of Directors assesses that the terms of the acquisition, including the purchase consideration, are in line with the market and will therefore recommend that Cherry’s Annual General Meeting approve the acquisition in accordance with the principal terms above.