Cherry: Adding value through option exercise in Game Lounge
Research Note
2017-12-22
16:58
Cherry continues to focus on creating long-term value for their shareholders. Yggdrasil continues to deliver new contracts and innovation at a rapid phase; one new game and three signed agreements in four days. ComeOn launched the new brand snabbare.com and Cherry today announced the exercise of the option to acquire additional 44% of the shares in Game Lounge at a price of roughly 5x 2017 EBIT, which are significantly below the valuation levels where comparable companies trade. It comes as no surprise to us that Cherry is exercising its option, I mean who would not?, but it’s clearly a value-adding decision that benefits the shareholders of the Group.
KL
Kristoffer Lindström
Disclosures and disclaimers