Leading online gambling operator 888 Holdings has recently announced its agreement to sell its Latvian operations to Paf Consulting Abp (Paf) for a fee of €28.3 million on a cash-free, debt-free basis. The transaction will see Paf acquire 90% ownership of the Latvian company, which currently operates under the William Hill and Mr Green brands in Latvia under local licensing. The deal includes brand licensing arrangements allowing the use of these brands in Latvia for a limited period. This strategic move by 888 Holdings aligns with its focus on core markets and value creation for shareholders.
Transaction Details:
888 Holdings will receive an initial cash payment of €24 million upon the completion of the transaction, with the remaining balance to be delivered in 2024 after the completion of the 2023 financial year report. By divesting its Latvian operations, 888 Holdings aims to optimize its asset base, focusing on markets that align with its long-term growth strategy.
888 Holdings’ Perspective:
Lord Mendelsohn, Executive Chair of 888, emphasized the company’s commitment to regularly reviewing its asset portfolio to ensure alignment with long-term strategic objectives and shareholder value maximization. Given the relatively limited exposure of 888 Holdings in the Baltic region, divesting the Latvian operations allows the company to concentrate its investments in core and growth markets.
Paf’s Future Outlook:
Janis Tregers, Co-Founder and Head of the Latvia Board, expressed confidence in the Latvian company’s prospects under the new ownership by Paf. With Paf’s acquisition, the business is expected to continue its success story, delivering exceptional products and experiences to customers. The transition of ownership is seen as a positive development that will enable continued growth and further strengthen the Latvian market presence.
Paf’s Strategic Fit:
Christer Fahlstedt, CEO of Paf, expressed enthusiasm about the opportunity to build upon the Latvian success story. Taking a long-term perspective, Paf believes that the Latvian market is moving toward enhanced player protection, making it a strategic fit for their operations. Paf’s focus on responsible gambling aligns with the evolving regulatory landscape in Europe, ensuring a sustainable and ethical approach to the industry.
European Gambling Regulations:
Gambling Insider recently conducted an interview with Paf, discussing the state of gambling regulations in Europe. The insights shared by Paf shed light on the industry’s evolving regulatory landscape, emphasizing the importance of player protection and responsible gambling practices. Paf’s commitment to these principles aligns with the changing regulatory environment and positions them for success in various European markets.
888 Holdings’ decision to sell its Latvian operations to Paf Consulting Abp represents a strategic move aimed at streamlining its asset base and focusing on core markets. The transaction enables Paf to expand its presence in the Latvian market and build upon the success of the acquired business. As the industry undergoes regulatory transformations, Paf’s long-term perspective and commitment to responsible gambling align well with the evolving landscape. This sale marks a significant development for both companies, allowing them to pursue their respective growth strategies and deliver exceptional experiences to customers.