The Independent Bid Committee of Cherry AB has recommended shareholders accept a public offer of SEK87 ($9.63) per share from European Entertainment Intressenter.

The offer is based on all shares of series A and B in Cherry, which amounts to over 90% of total shares, valued at SEK9.19bn.

The Committee has recommended the offer is accepted by Cherry shareholders on the basis of several factors.

Among other reasons, the Committee has suggested upcoming regulation of the Swedish gambling market encourages consolidation, using William Hill’s bid for MRG as an example.

The Committee concluded: "Based on the above, the Independent Bid Committee recommends the shareholders in Cherry to accept the Offer. The decision was taken with a unanimous vote by the Directors appointed by the General Meeting of Cherry."

Following the news, Cherry’s share price has risen from SEK72.50 to SEK85.90.