Business
Sale of Latvia Business
Sale of Latvia Business.
About this update from Evoke Plc
[{"type":"text","content":"\n\n\n \n22 May 2023\n \n888 Holdings Plc\n(\"888\" or \"the Group\")\n \nSale of Latvia Business\nNon-core asset sale for up to £22 million to increase focus on Core and Growth markets\n \n888 (LSE: 888), one of the world's leading betting and gaming companies with internationally renowned brands including William Hill, 888 and Mr Green, today announces that it has reached an agreement to sell its Latvian business (the \"Transaction\"), to Paf Consulting Abp. The total consideration is up to €28.25 million (£24.6 million) for 100% of the business on a cash-free debt-free basis, with an initial consideration of €24 million (£20.9 million) to be paid in cash upon completion of the Transaction, and a further potential earn-out of up to €4.25 million (£3.7 million) payable in 2024 upon completion of the 2023 audited financials. The Group owns 90% of the entity and the consideration will be used for general corporate purposes.\nThe Latvian business operates with a local licence, using the William Hill and Mr Green brands. The Group will provide a brand licence to continue the usage of these brands within Latvia for a limited period. The business operates largely as an independent entity, with its own management team and operating on a separate technology platform. As such the Transaction is expected to have no impact on the ongoing operations and synergy program of the Group and is consistent with the Group strategy to focus on core and growth market plans.\nIn 2022 the Latvia business generated net revenue of £9.1 million and EBITDA of £2.5 million, and the value of the gross assets subject to the transaction, as set out in the 31 December 2022 balance sheet, was approximately £9.3 million.\nCompletion of the Transaction is conditional upon, amongst other items, the carve out of the Latvian subsidiary from the Group's supplier contracts and incorporation of the Latvian subsidiary into Paf's contracts, certain change of control consents and the payment of a dividend by the Latvian subsidiary. Completion is currently expected to occur in the coming weeks.\n \nLord Mendelsohn, Executive Chair of 888, commented:\n\"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. As a business, our relative...