Good news for Boss Media shareholders

01.02.2008

Shareholders in the Swedish online gambling turnkey provider Boss Media will be rubbing their hands with glee this weekend at the news that their holdings have soared 25 percent in value. The reason? GTech subsidiary GEMed has made a bid for the Stockholm-listed firm at SEK19 a share, valuing the company at SEK1 billion (Euro 105.6 million) and driving the share price up to SEK19.

GEMed AB, is a company jointly owned by GTECH (87.5 percent) and Medströms (12.5 percent)

Boss Media directors released the background to the potential deal in a statement as the week drew to a close, revealing that towards the end of 2007, Boss was approached by a number of parties that indicated an interest to acquire the company (see previous InfoPowa reports).

Based on this serious interest Boss Media directors retained an adviser and established a process granting access to a limited number of parties to conduct a limited due diligence process as well as meet with the management in Boss Media.

GTECH agreed to participate in this process and has subsequently submitted an offer from GEMed prior to the deadline set by the Board.

Boss Media directors are being advised by HDR Partners in the process and will, among other things, await a fairness opinion from this adviser prior to deciding on whether to recommend, or not recommend, the shareholders of Boss Media to accept the offer from GEMed.