Paf will pay an initial €24.0m in cash up front upon completion for 888’s business. A further €4.3m will be due in 2024 following the conclusion of 2023 audited financials.
The Latvian business operates with a local licence under both the William Hill and Mr Green brands. 888 will provide a brand licence to continue the usage of these brands within Latvia for a limited period. 888 owns 90% of the entity. However, the business operates largely as an independent entity, with its own management team and on a separate technology platform. As such, 888 does not expect the transaction to have any impact on the ongoing operations.
Completion of the deal is subject to a number of closing conditions. These include the carving out of the Latvian subsidiary from 888’s supplier contracts and incorporation of the Latvian subsidiary into Paf’s contracts. 888 expects to finalise the deal in the coming weeks and will use the proceeds for general corporate purposes.
“We continually review our asset base to ensure that we are only holding assets that both contribute to our long-term strategy and will maximise value for our shareholders,” 888’s executive chair, Lord Mendelsohn, said.
“As a business, our relatively limited exposure in the Baltic region means that the region is not one of our core or growth markets where we prioritise our investments.
The Latvian business is a high-quality, locally regulated business, with an excellent team that has built a strong market position. I would like to express my sincere thanks to the team for their dedication during their time with the group and I am highly confident that under new ownership with Paf, the business will continue to flourish,” added Lord Mendelsohn.
“We are thrilled to get the opportunity to continue to build on a great Latvian success story. With a long-term perspective, we are convinced that the Latvian market is moving in the direction of increased player protection and thereby a great strategic fit for Paf,” said Paf chief executive Christer Fahlstedt.
