Tuca Zbarcea & Asociatii has advised sports betting company Fortuna Entertainment Group on Romanian legal issues related to its acquisition of Hattrick Sports Group Ltd., Ireland, from Hattrick Sports Group LLC (U.S) and other shareholders and share warrant holders.
According to a press statement issued by Fortuna Entertainment Group, the transaction is subject to conditions precedent including approval of the competition councils and by the shareholders of Fortuna. The closing of the transaction is expected to occur in the first half of 2017. The initial consideration to be paid by Fortuna for the acquisition of Hattrick Sports Group will be approximately EUR 85 million. As a further consideration, an earn-out mechanism has been agreed with the sellers which is based on future financial performance of Hattrick Sports Group and which may lead to payment of a maximum additional amount of EUR 50 million. The initial consideration will be funded mainly via bank loans.
The target deal in Romania is Casa Pariurilor, which TZA describes as "the second largest bet shops operator, having a network of over 700 outlets." TZA reports that "the acquisition is driven by the plans of Fortuna to become the largest gambling operator in Romania."
TZA Partner Cristian Radu, who specializes in Gambling law, headed the firm's team of lawyers, which performed "an in-depth legal due-diligence exercise and ... assisted in the structuring of the transaction and, respectively, the drafting and negotiation of the transaction documents." In addition, according to TZA, "currently, we are advising the client in the process of setting-up the acquisition finance."