Olympic Entertainment Group Contemplated Exit From Nasdaq Baltics (Cash Offer To BuyBack Shares)

Updated: 22 March, 2018 seen 224

Olympic Entertainment Group has been one of the first Baltic equity I have added to my Baltic stock portfolio, back in the April 2017.

And in fact, I planned to acquire more stocks of Olympic Entertainment group this March or April. See: Top Dividend Paying Stocks In Nasdaq Baltic I'm Planning to Acquire in 2018

Olympic Entertainment Group AS with its subsidiaries is the leading provider of gaming services in the Baltic States and operates casinos in Slovakia, Malta and Italy. Olympic Entertainment Group AS is the Group’s ultimate holding company, organising the strategic management and financing of the Group. The operations of local casinos are controlled by local subsidiaries. Most of the Group’s casino properties operate under the trademark of Olympic Casino. In addition to land-based casinos the Group is also providing online casino services and operates a hotel and casino complex in Tallinn, Estonia.  

Sudden, but not a surprise, announcement  came on March 19th morning on Nasdaq Baltics stock exchange, informing about Contemplated Exit by Major Shareholders, Voluntary Takeover Offer and Business Combination Agreement

On 19 March 2018, two major shareholders of Olympic Entertainment Group AS (the “OEG”) OÜ HansaAssets (a company under the sole control of Mr Armin Karu, the Chairman of the Supervisory Board of OEG) and OÜ Hendaya Invest (a company under the sole control of Mr Jaan Korpusov, the member of the Supervisory Board of OEG), acting separately and independently, entered into a share sale and purchase agreement (the "SPA") with Odyssey Europe AS (the “Buyer”), under which OÜ HansaAssets and OÜ Hendaya Invest contemplate to sell and transfer all the shares of OEG currently held by them. OÜ HansaAssets holds currently altogether 68,361,890 shares of OEG, representing 45.0368% of all the shares of OEG, and OÜ Hendaya Invest holds altogether 28,761,910 shares of OEG, representing 18.9483% of all the shares of OEG.

The purchase price of the shares shall be EUR 1.9 per one share.

It was already in 2017, when Olympic Entertainment group delisted shares from Warsaw stock exchange, see: Shares will be delisted from Warsaw Stock Exchange as of 19 September, and that's why such announcement didn't come as a surprise, at least for me.

The news about share buybacks helped Olympic Entertainment to rank #1 as most traded equity on Nasdaq Baltics at the end of the day. In total, more than 2 million shares with a turnover of more than 4 million EUR were sold on March 19, 2018. 

Most active trades on Nasdaq Baltic (March 19, 2018)

Most active trades on Nasdaq Baltic (March 19, 2018)

I did a rough estimate to calculate average holding per investor and came up with a 13,000 EUR (4,000,000/301)

As the Nasdaq Baltic market is not very liquid, I believe I won't be wrong saying that today's trading session will be among top 10 trading sessions for 2018.

I sold my humble holding of Olympic Entertainment Group, and quite frankly felt a bit sorrow, as I really enjoyed this dividend paying stock, and was looking for stable dividends for a month of May for years to come. If this equity will be delisted from Nasdaq Baltics we will lose one great dividend paying stock.

Nasdaq Baltic Stock Market Biggest Gainers / Losers 2017

Olympic Entertainment group was listed on Nasdaq Baltics since 2006

In total, I had 200 shares of Olympic Entertainment Group, and I bought them in April 2017, paying EUR 1.8 per share. In dividends I have received EUR 18, giving a 5% dividend yield on cost. In total, I've got a decent 10.56% gain from this investment in little less than 1 year. Or EUR 38 in cash.

The Bottom Line

Olympic Entertainment Group was a good to have dividend paying stock in my portfolio, now after I have sold my holdings, it means just - one - drop in May dividend income. From the money I got from this sale, I decided to acquire two other Estonian Stocks - Nordecon and Ekspress Group, both promising dividend payment in June/ July.

Read more: Novalpina Capital announces its intention to make a voluntary cash offer to acquire 100 per cent of the shares of Olympic Entertainment Group AS (TAL: OEG1T)