Fortuna wraps up buy of 4 Romanian firms from Fortbet Holdings

Fortuna wraps up buy of 4 Romanian firms from Fortbet Holdings Fortuna Romania

BUCHAREST (Romania),September 1 (SeeNews) - The Netherlands-based betting operator Fortuna Entertainment Group said on Friday that it has completed the acquisition of four Romanian companies from Fortbet Holdings for a total of 47 million euro ($56 million).

The acquisition of Bet Active Concept, Bet Zone, Public Slots and Slot Arena from Fortbet Holdings was approved by the company's extraordinary general meeting of shareholders on August 1, Fortuna said in a regulatory announcement posted on its website.

The newly acquired companies will be fully consolidated with the rest of Fortuna ́s Group business starting September 1.

Fortbet is the majority shareholder of Fortuna and a subsidiary of Penta Investment Group.

Fortuna announced its intention to buy the four companies in March, but the process took longer as in April, the Amsterdam Court of Appeals prohibited Fortuna's shareholders from voting on the acquisition after a group of shareholders advised by Templeton filed an injunction to stop the sale. In July, however, the court dismissed all requests made by Franklin Templeton investment funds.

Currently, the four companies operate a network of 787 retail stores, of which 57% are owned and the rest are franchisees, and employ some 1,200.

"The company plan is to further reinforce and grow the multi-channel betting and gaming business through investment into future growth. The Romanian operation will be integrated with Hattrick business in Romania but will keep a dual-brand strategy," Fortuna said.

Out of the total sum to be paid for the companies, some 32 million euro was paid as initial base price on the closing date whilst the rest will be paid as earn-out mechanism with maximum earn-out opportunity of 15 million euro. In addition,approximately 3 million euro in loans provided by Fortbet to the Romanian entities will be refinanced. The consideration will be funded via company’s cash and bank loans.

In April, Fortuna acquired Hattrick Sports Group's operations in Romania, Croatia and Spain for an undisclosed sum. Hattrick was the owner of the leading betting operator in Romania, Casa Pariurilor.

Through these multiple acquisitions, Fortuna Entertainment Group aims to become a new betting market leader in Romania, where it has been present since September 2015 through a brand licensed agreement.

The Fortuna Entertainment Group was established in 1990 in the Czech Republic. It is now based in the Netherlands. Over time, it has grown into a holding company with operations in Slovakia and Poland.

($=0.842 euro)

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