(Alliance News) - 888 Holdings PLC on Monday said that it has agreed to sell its Latvian business to Paf Consulting Abp for up to EUR28.3 million.
888 Holdings is a Chichester, England-based betting and gaming company, with internationally renowned brands including William Hill, 888 and Mr Green. Paf Consulting manufactures and distributes gaming consoles.
The sale is for 100% of the business, with an initial consideration of EUR24 million to be paid in cash upon completion of the transaction, and a further potential earn-out of up to EUR4.3 million, payable in 2024 upon completion of this year's audited financials.
888 Holdings owns 90% of the Latvian business, and told investors the cash from the sale would be used for general corporate purposes.
In 2022, the Latvia business generated net revenue of GBP9.1 million and earnings before interest, tax, depreciation and amortisation of GBP2.5 million.
"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 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," said Executive Chair Lord Mendelsohn.
He added: "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."
888 Holdings shares were trading 1.8% higher at 78.35 pence each in London on Monday morning.
By Holly Beveridge, Alliance News reporter
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