Boss: GEMed Takes 50 Percent in 48 Hours

14 February 2008

After GEMed raised the stakes Wednesday in its bid to acquire Boss Media, the Swedish supplier's Chief Executive Michael Hallén said this morning that GEMed has acquired roughly 50 percent of Boss' issued share capital -- in the last 48 hours.

"Yesterday morning, GEMed increased its public offer to SEK 25.00 ($4.00) and they also secured a number of the larger shareholders and got them to accept transactions on the SEK 25.00 level," Hallén told IGN. "A number of them have sold the shares to GEMed over the last 48 hours."

By way of background, Hallén explained that GEMed -- a jointly-owned investment vehicle consisting of Medströms and Gtech -- was created for the sole purpose of acquiring Boss.

Medströms holds a 12.5 percent stake in GEMed, while Gtech has an 87.5 percent share; Medströms, too, is Boss' largest shareholder with a 12.5 percent stake.

Of GEMed's original offer -- SEK 19.00 ($3.00) per share -- Hallén said it "didn't really fly" and was subsequently rejected by the board and other large shareholders.

Looking ahead, however, he said that the deal -- if and when completed -- will include the desirable add-on of Gtech's sales and distribution channels, and will help Boss make inroads with some of the world's larger gaming companies, especially those belonging to the World Lottery Association.

Members of the WLA include directors and executives from the world's state-run lotteries, including Française des Jeux, Veikkaus Oy and Toto-Lotto Niedersachsen.

"Add to that chain of distribution and that reach the very strong product of Boss Media -- I think that that serves the business plan in respect of increased volume significantly," Hallén said.

On the OMX Nordic Exchange, shares in Boss closed even at SEK 25.00.

Chris Krafcik is the editor of IGamingNews. He lives in St. Louis, Mo.