Catena Media stock soars as entire company could be sold
Catena Media has confirmed that third parties have shown interest in acquiring the entire company.
The news has led to a significant increase in the value of the company’s shares, with the stock price rising by more than 20% at the time of writing.
The Malta-based company said it has mandated financial adviser Carnegie Investment Bank to help assess strategic options and engage in conversations with third parties who have expressed interest in acquiring certain assets, but also in taking over the entire business.
In December 2022, GiG struck a €45m deal to acquire the casino affiliate’s flagship website AskGamblers and several smaller domains.
At that time, Catena Media also revealed that third parties had shown an interest in acquiring its financial trading business.
The firm has now revealed that during ongoing discussions, third parties have indicated a desire to acquire all the remaining assets of the group in a strategic transaction, or through a public tender offer for the group.
No bid received
Catena Media said it has not yet received any firm or indicative bids for the company or any of its assets.
When speaking to iGaming NEXT, Catena Media CFO Peter Messner emphasised the company’s board would evaluate all viable options when, and if, the interest translates into any firm or indicative bid.
He further added that the timeline for a process, if there should be one, cannot be determined as of now and will depend on the outcome of any evaluation of strategic options.
Catena Media first embarked on a strategic review of its business in May 2022.
Subsequently, in August, the firm expanded the scope of its review to include its European sports betting and casino assets in order to redirect resources towards higher margin growth opportunities in the US market, as well as the Asia-Pacific and Latam regions.
In its Q3 2022 financial results, Catena Media posted a 29% decline in adjusted EBITDA to €11.7m and a 2% year-on-year revenue decrease to €32.3m, which it mainly attributed to worsening macro-economic conditions.