Enlabs is getting ready to take over Global Gaming.
Enlabs has recently bought more shares of Global Gaming, enabling the Latvian company to fully take control of the business.
Enlabs has purchased 9,878,086 shares of Global Gaming at a price of 11 Swedish Krona per share. They plan to pay half in cash and half by issuing new Enlabs shares.
This increases their ownership in the Ninja Casino operator from 29.89% to 54.06% of all shares and voting rights.
As a result, they are required to make a public offer to buy the remaining shares of the business within four weeks, which they fully intend to do.
They plan to offer Global Gaming’s other shareholders the chance to transfer their shares to Enlabs at a price of 11 Swedish Krona per Global Gaming share. This is 34% higher than the average trading price of Global Gaming over the last 90 days. Enlabs has said they will not raise this offer.
Enlabs has been consistently increasing their ownership in Global Gaming this year, purchasing 11,300,000 shares of the business in June, in addition to their already held 920,028 shares. This brought their ownership to 29%.
Enlabs has emerged as the leading shareholder in Global Gaming, holding a 9% stake in its issued stock.
This grants Enlabs the authority to appoint members to Global Gaming’s governing body. Enlabs’ chairman, Niklas Braathen, financial specialist Christian Rasmussen, legal counsel Michael Niklasson, and Jonas Bertilsson, the chief executive of investment firm Rugosa, have been added to the board.
Arne Reinemo, who has served as a Global director since May, has been reinstated to the board, in accordance with Enlabs’ preferences.
Enlabs’ operations were affected by the novel coronavirus (Covid-19) in the initial six months of the year, with authorities in its primary market Latvia suspending gambling activities across all channels from April 8 to June 10. This resulted in a 9.9% decrease in revenue to €16.6 million (£15 million/$19.6 million).
In its report for the period, Dainis Niedra, the operator’s managing director for Central and Eastern Europe, characterized the Global investment as a “crucial turning point” for the enterprise.
Niedra explained: “Enlabs and Global Gaming are complementary, as we share the same markets in Finland and Estonia.” “Global Gaming’s brand NinjaCasino is one of the most prominent brands in the gambling sector and a pioneer in pay-and-play technology.”
Global Gaming integrated sports betting powered by Altenar into Ninja Casino this week, with its first-half revenue experiencing a substantial year-on-year decline, partially attributed to the business being excluded from its core market Sweden.
Despite this, the company considerably lessened its overall deficit in the initial period and achieved a gain in the subsequent period.
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