INM offloads Cashcade asset

Independent News & Media has sold its 18% stake in Cashcade for £13.2 million to digital group PartyGaming.

The struggling newspaper group will receive €15.3 million for the gambling group, which owns gaming brands such as Foxy Bingo, as well as “incremental proceeds” over the next two years as long as earnings targets are met.

PartyGaming’s deal with INM is part of a complete buyout of the Cashcade operation, in a deal thought to be worth around £95.9 million.

Jim Ryan, PartyGaming’s chief executive, said: “Cashcade provides us with an excellent platform to build a meaningful share of the $1.5 billion global online bingo market.”

Last year, Cashcade, which owns brands including Think Bingo, GetMinted and Cheeky Bingo, reported profits of £7.5 million.

The Independent owner said the sale of its Cashcade asset was part of its “de-leveraging” strategy as the group attempts to negotiate a debt restructuring with investors.

On Monday, INM secured the third extension to its “financial standstill” deal with its investors in a bid to negotiate a refinancing deal of a €200 million bond (see INM to secure third standstill deal).