In one of the latest developments in the world of Casino, the famed Kindred Group is all set to buy 32Red Plc for a 175.6 million deal. The deal is set at 196 pence per share, or a 16% premium on the close of 32 Red. The shares of the company have been on the rise amid the many speculations over the takeover.
On Thursday, Kindred stated that the deal is 40% of the average stock price of the last three-months. The company will fund the purchase with debt. Last week, a Bloomberg report stated that 71% of the shareholders of 32 Red has been targeted for the takeover. However, until 75% people have signed on, it will not be valid.
32 Red has been a potential target for a takeover. And, players have noticed a dramatic change in the firm’s promotions, premiums and other enhancements over the last two years. Apart from 32 Red Casino, other online games, namely Dash Casino, 32Red Sport, 32Red Poker, 32Red Bingo, Roxy Palace, Golden Lounge, Casino Splendido and Nedplay are included in the deal.
32 Red is reputed for being honest and transparent with its players. The last acquisition of Kindred took place in 2015, when Poker operator Stan James, Casino, Games and Sports Betting were bought by Unibet.
Due to changes in the UK market, the regulatory fees, licensing conditions and taxes have increased and thus, companies need to grow in size to take over others. In late 2015, around $12.9bn was spent on M&A deals, which was the highest in the decade. In order to take over Betfair Group, Paddy Power signed a whopping $4.4 billion deal.
With the acquisition of 32 Red, Kindred will establish itself as an authentic and reliable online casino portal. It will consolidate its place in the UK market, not depending much on Sweden. Kindred also intends on expanding its presence in the Netherlands.
In a press conference, Ed Ware of 32 Red stated that the business philosophy between the two companies had always been similar, and they now hope that the joint venture will be a great success. He made no statement whether to stay on with his company that he founded after he left Ladbrokes in 2002.