Caledonia Investments sells Buzz Bingo shares after Covid-19 setback
Caledonia Investments has sold its shares in Buzz Bingo to Intermediate Capital Group (ICG) for a nominal amount.
The investment company has chosen not to participate in the latest round of fundraising and instead sell its shares.
After investing £22m ($30.6m) in the summer of 2020, the company has decided it will not provide more capital following a third national lockdown.
Instead, ICG and Barclays will provide further capital to Buzz Bingo, which has struggled to trade much over the past year due to the Covid-19 crisis.
ICG is already a long-term backer of Buzz; it has stepped in to provide £18m to ensure the business can thrive beyond lockdown.
Likewise, Barclays has secured a £10m facility which will support further investment and grow its online offering.
Chris Matthews, Buzz Bingo CEO, said: “This agreement provides us with the financing we need to ensure our success when Covid-19 restrictions ease.
“Prior to Covid-19, we were in a strong position and growing. But lockdowns meant we have only been able to fully trade for about six weeks since March 2020.”
Despite the land-based complications, Matthews mentioned the company saw growth online.
“We are also benefiting from the fast growth of our online offering Buzzbingo.com, which two years after launch is already one of the UK’s market leading operators in its own right,” he added.
Buzz Bingo will allow customers to return to its 91 clubs throughout the UK on 17 May 2021.
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