Kindred group to acquire 32red group

The Reuters news agency reported Thursday that the Kindred online gambling group (formerly known as Unibet) has announced its planned acquisition of the 32Red online gambling group for a consideration of almost GBP 176 million.

The acquisition will further strengthen Kindred’s position in the UK online gambling market, a statement from the company claimed, advising that Kindred has made a GBP 175.6 million cash offer for 32Red, with the cash funded from new acquisition facilities of up to GBP 178 million, specifically for the purposes of this transaction.

32Red shareholders will be entitled to receive GBP 1.96 per share and will also be entitled to receive a second interim dividend of GBP 0.04 per share, the company advised, noting that the bid, together with the approved dividend represents a premium of approximately 16.3 percent to the closing price per 32Red share of 172 pence on 22 February 2017.

In 2015, 32Red generated Net Gaming Revenues of GBP 48.7 million and EBITDA of GBP 5.2 million. On 1 February 2017, 32Red issued a Post Close Trading update for the year ended 31 December 2016 and announced Net Gaming Revenues of GBP 62.3 million. The company is licensed and regulated in Gibraltar, the UK and Italy and is listed on the AIM market of the London Stock Exchange. It currently boasts 125 employees based in Gibraltar.

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