OEG acquires Latvian casino operator SIA Garkalns and its subsidiary SIA Post-Nevada
Posted on 27. July 2015
OEG group company Olympic Casino Latvia SIA signed the agreement to acquire 100% shareholding in Latvian casino operator SIA Garkalns, which is also the 100% owner of the subsidiary SIA Post-Nevada. The purpose of the acquisition is to increase the market share in Latvia. On the completion of the transaction OEG will own 57 casinos in Latvia.
Garkalns and its subsidiary Post-Nevada have 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, companies’ revenue was more than EUR 6 million and the employed 245 people. The nominal value of the share capital of SIA Garkalns is EUR 1,991,553. The parties agreed not to disclose the price of the transaction.
The completion of the transaction is dependent on the ordinary conditions, including the approval from the Latvian Competition Council. The casinos to be acquired will be brought into compliance with the quality standards of OEG within one year, after which they will be rebranded as Olympic Casino.
Before acquiring Garkalns and its subsidiary Post-Nevada, Olympic Casino had 37 casinos in Latvia with 1,056 slot machines and 19 gaming tables. In 2014, the Latvian subsidiaries 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 are not personally interested in this transaction in any other way.
Olympic Entertainment Group AS