Swedish gaming company to restructure into 3 independent companies
Monday 19th December 2005
Publicly traded Swedish gaming company, Cherryföretagen (‘Cherry’), has announced that the company is to be split into three independently listed companies. The board of Cherry determined that by restructuring into three operational branches, their development could proceed more rapidly than as one single entity. Moreover, the restructuring gives added transparency to the different businesses thereby giving shareholders the possibility to choose their desired risk level and area of operations.
“The Internet-based operations will grow more quickly and with a higher profitability in their own companies, Cherry Casino will receive more attention. I also believe that the market will appreciate having three clear investment alternatives”, says Pontus Lindwall, CEO of Cherry.
The three parts have been proposed as:
• Betsson – presently Cherry Online with online gaming via Betsson.com and online casinos.
• Net Entertainment – development and sales/licensing of games and gaming systems.
• Cherry Casino - traditional casino games and gaming machines, mainly in Sweden, Denmark and on cruise ships.
Cherry, soon to be known as Betsson, are hoping to complete the split at the latest by 2006.
Currently Cherry’s expected 2005 turnover of SEK 435 million (311). The company is hopeful that Betsson (currently Cherry Online) will at least double their turnover during 2006.
Publicly traded Swedish gaming company, Cherryföretagen (‘Cherry’), has announced that the company is to be split into three independently listed companies. The board of Cherry determined that by restructuring into three operational branches, their development could proceed more rapidly than as one single entity. Moreover, the restructuring gives added transparency to the different businesses thereby giving shareholders the possibility to choose their desired risk level and area of operations.