Once known simply as the Unibet Group, the Kindred Group officially made an offer for the acquisition of 32Red in a £175.6 million cash bid, which has been accepted. The purchase falls in line with plans to reinforce its presence as a UK-focused group and move forward with its brand expansion plans.
The 32Red umbrella consists of casino, bingo, poker and sports products along with Roxy Palace, which it took over in 2015.
“The acquisition of 32Red is consistent with our multi-brand strategy and stated desire to grow our business in locally regulated and soon to be regulated markets. 32Red is a high quality, customer-focused business with a similar culture to Kindred Group’s and we are delighted to welcome 32Red and its team into the Kindred family and look forward to further developing the brand going forward,” said Kindred Group CEO, Henrik Tjärnström.
The specifics of the sale…
Kindred has agreed to pay the brand’s shareholders GBP 1.96 per share in cash followed by another dividend of GBP 0.04 per share for a grand price tag of GBP 175.6 million. It hasn’t been confirmed whether or not Ed Ware, the founder of 32Red, will stick with the company following the transfer.
“The cash consideration payable under the Offer will be funded by new acquisition facilities of up to GBP 178 million, specifically for the purposes of this Transaction. Kindred Group has received irrevocable undertakings in support of the Offer in relation to an aggregate of 60,701,232 32Red shares, representing approximately 71.1 percent of the share capital of 32Red.”
The deal will be final once the regulatory authorities involved has given their final approvals.
‘Kindred Group is Looking to Expand’, kindredaffiliates.com, February 23, 2017