Enlabs becomes largest shareholder in Global Gaming in £7.7m deal
Nasdaq-listed operator agrees cash plus shares deal for an increased stake in struggling Swedish brand
Nordic-focused operator Enlabs has agreed a deal to more than double its stake in fellow operator Global Gaming at a cost of SEK90.4m (£7.7m).
As part of the deal, Enlabs will acquire an additional 11,300,000 shares in the Malta-based operator at an agreed price of SEK8 per share.
Enlabs already owned 920,028 shares in Global Gaming prior to this transaction, with the additional share purchase taking its stake in the business up to 30%.
The share purchase will be paid for with a 50% cash payment, while the remaining half will be paid in the form of newly issued shares in Enlabs.
The multi-million-pound deal will make Enlabs the largest shareholder in Global Gaming, which has been on a significant financial downturn since the revocation of its Swedish licence in July 2019.
In May, Global Gaming revealed Q1 2020 GGR had slumped by 64% year-on-year to SEK57.8m and that 2019 profits had crashed by almost 200%.
Global Gaming is still involved in long-running and costly litigation against the Swedish Gambling Authority (SGA) over the decision to strip the company of its licence in the Scandinavian country.
Enlabs has offices in Tallinn, Riga, Vilnius, Malta, Marbella, Minsk and Stockholm, and employs around 200 people.