February 23, 2017 / 7:51 AM / 8 months ago

UPDATE 1-Online gaming firm Kindred to buy 32Red in £176 mln deal

(Adds detail)

Feb 23 (Reuters) - Online gaming company Kindred Group said on Thursday it was buying gaming firm 32Red for £176 million ($218.82 million), further strengthening its position in the online casino market in the United Kingdom.

* Says to make a GBP 175.6 mln recommended cash offer for 32Red

* Says cash consideration payable under the offer will be funded by new acquisition facilities of up to GBP 178 million, specifically for the purposes of this transaction

* 32Red shareholders will be entitled to receive GBP 1.96 per share and will also be entitled to receive a second interim dividend of GBP 0.04 per share.

* Says bid together with the approved dividend represents a premium of approximately 16.3 pct to the closing price per 32Red share of 172.0 pence on 22 February 2017.

* Says In 2015, 32Red generated Net Gaming Revenues of GBP 48.7 million and EBITDA of GBP 5.2 million.

* Says on 1 February 2017, 32Red issued a Post Close Trading update for the year ended 31 December 2016 and announced Net Gaming Revenues of GBP 62.3 million.

* Says 32Red is licensed and regulated in Gibraltar, the UK and Italy and is listed on the AIM market of the London Stock Exchange.

* Says 32Red has approximately 125 employees based in Gibraltar.

* Says completion of the transaction is subject to certain conditions including customary regulatory approvals by the relevant gambling authorities. Source text for Eikon: ($1 = 0.8043 pounds) (Reporting by Johannes Hellstrom)

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