Business
Proposed sale of UK Real Money Casino business
Proposed sale of UK Real Money Casino business.
About this update from Gaming Realms Plc
[{"type":"text","content":"\n \nRNS Number : 8092S Gaming Realms PLC 27 June 2018 \n\n27 June 2018\n \nThe information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.\n \n \nGaming Realms plc\n \n(\"Gaming Realms\" or the \"Company\" or, together with its subsidiaries, the \"Group\")\n \nProposed sale of UK Real Money Casino brands and business\nand \nNotice of General Meeting \n \n \nGaming Realms plc (GMR.L), the developer, publisher and licensor of mobile real money and social games, announces that the Company has entered into an agreement, conditional upon shareholder approval, to sell a 70% stake in most of its UK online casino B2C business to River UK Casino Limited (\"River UK Casino\", a subsidiary of River iGaming plc, a company listed on the Merkur Market of the Oslo Bors (\"River iGaming\")) for a total cash consideration of up to £23.1 million (the \"Transaction\"). \n \nTransaction highlights:\n \n· River UK Casino is a newly incorporated company, established by River iGaming plc to acquire \ncertain of the Company's UK online casino B2C brands, being Pocket Fruity, Spin Genie, Britain's Got Talent Games, X Factor Games and associated business (the \"Business\")\n· Following the completion of the Transaction, River iGaming will hold 70% of the issued share capital of River UK Casino, with Gaming Realms holding the remaining 30%\n· River UK Casino has entered into a five year B2B platform and content agreement with the Company on normal commercial terms, which Gaming Realms expects to generate approximately £1 million of annual revenue for the Group\n· The total consideration payable in cash to the Company for 70% of the Business will be up to £23.1 million, comprising:\no a minimum payment of £8.4 million (of which £4.2 million is payable on completion and £4.2 million payable concurrently with the earnout payment); and \no a further maximum cash payment of £14.7 million on an earn-out basis , payable no later than 31 August 2019 (based on 70% of 5.5 times River UK Casino's EBIT f...