OEG has completed the acquisition of Latvian casino operator SIA Garkalns
Posted on 02.12.2015
After receiving an approval from the Latvian Competition Council, Olympic Casino Latvia SIA, the subsidiary of OEG, has completed the acquisition of 100% shareholding in Latvian casino operator SIA Garkalns. SIA Garkalns has by now merged with its 100% owned subsidiary SIA Post-Nevada. The acquisition has increased the market share of OEG in Latvian gambling sector. As a result of the completion of the transaction OEG now owns 57 casinos in Latvia.
Garkalns acquired by OEG has 20 slot casinos in Latvia, ten of which are located in the country’s capital city Riga and ten in the regional cities, and have a total of 432 slot machines. In 2014, consolidated revenue of acquired company was more than EUR 6 million and the company employed 245 people. The nominal value of the share capital of SIA Garkalns is EUR 1,991,553. The price of the transaction is not subject to disclosure as agreed between the parties.
The acquired casinos will be brought into compliance with the quality standards of OEG within one year, after which they will be rebranded as Olympic Casino.
Before the acquisition of Garkalns, Olympic Casino had 37 casinos in Latvia with 1,068 slot machines and 19 gaming tables. In 2014, the Latvian subsidiary of OEG had revenue of approximately EUR 48 million and employed 679 people.
The transaction is not considered to be a transaction with related parties (in the meaning of the rules and regulations of NASDAQ OMX Tallinn stock exchange) and it does not have a direct effect on the economic activities of the OEG group. The management board and the supervisory board members of OEG were not personally interested in this transaction in any other way.