Triple Split For Cherry Online Casino Group
Published: Tuesday, December 20, 2005 Online-Casinos.com
TRIPLE SPLIT FOR CHERRY ONLINE CASINO GROUP
Serious restructuring taking place in Swedish online gambling gambling group
The Swedish public gambling company Cherryforetagen announced some serious
restructuring moves this week that will split the company into three independently
listed entities.
The board of directors determined that by restructuring into three operational
branches, development could proceed more rapidly than as one single group. The
Board opined that the restructuring gives added transparency to the different
businesses, thereby giving shareholders the possibility to choose their desired
risk level and area of operations.
Because the online-based operations will grow more quickly and with a higher
profitability in their own companies, Cherry Casino will receive more
investor attention, says CEO Pontus Lingwall.
The three new firms are likely to be:
* Betsson – presently Cherry Online with online gaming via Betsson.com
and online casinos.
* Net Entertainment – development and sales/licensing of games and
gaming systems software.
* Cherry Casino - traditional land casino games and gaming machines,
mainly in Sweden, Denmark and on cruise ships.
Cherry, soon to be known as Betsson, is hoping to complete the split during
2006.
Cherry’s currently expected revenues for 2005 are SEK 435 million. The
company is hopeful that Betsson - currently Cherry Online - will at least double
its turnover during 2006.
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