International edition
September 18, 2020

Strategic deal

Olympic Entertainment Group's subsidiary to acquire Admiralu Klubs

(Latvia).- The Latvia subsidiary of Olympic Entertainment Group (OEG) signed a pre-contract to acquire Latvia's third-largest casino gaming operator, Admiralu Klubs (AK). The transaction is valued at 40 million euros initially, with the final amount to be determined after completion of due diligence.

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EG currently operates over 4,000 slots in Latvia. The AK deal would add 2,200 to that number. AK has one full casino and 59 slot halls. Forty of the slot halls are situated in the capital, Riga. The group had revenue equal to 19.2 million euros in 2006. Net profit came to 3.5 million euros.

The 2006 revenue of OEG and AK taken together amounted to 125.3 million euros. The portion of that from Latvia amounted to 51.6 million euros. The deal will give OEG 25 percent of the Latvian market. The first nine months of 2007 saw revenues in the Latvian market equaled 204.4 million euros. The deal is contingent on several standard factors, including approval by the Latvian Competition Board.

Andri Avila, a member of the OEG management board, said that Olympic Casino is Latvia's second largest casino operator. “There are now 18 companies operating on the dispersed Latvian casino market,” said Avila. “Therefore, the current merger of two large casino chains and the ongoing consolidation of the gaming market make a lot of sense. “Today's transaction is in line with our main objective to be the market leader and pioneer on every market,” he said.

OEG is a clear market leader in Estonia and Lithuania and its market share is rapidly growing in Poland and Ukraine as well.

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