Entain increases Enlabs bid to £315m, confident the endgame is approaching
Entain Plc have raised their acquisition offer for Baltic-facing Optibet operator, Enlabs, from £250m to £315m
Entain Plc are more confident than ever with its new €365m/£315m cash Enlabs takeover offer. The moves comes after Enlabs rejected the gaming giant’s £250m bid back in January as shareholders that owned 10.7% of Enlabs said it “materially undervalues” the company. With the majority fo shareholders content with the offer, Entain is confident this will be endgame.
Entain, formerly known as GVC Holdings Plc, increased their acquisition offer from SEK 40 to SEK 53 per share.
Given the offer acceptance period until 18 March, 2021, GVC Group CFO and Deputy leader Rob Wood legitimised Entain’s latest SEK 53 cash offer this morning.
In Entain’s transaction statement, Wood explained:
In a highly competitive and regulated industry, where consolidation is a key theme, Entain is able to provide the scale and platform needed to further support Enlabs’ long-term growth,
We firmly believe that Entain will be the best home for Enlabs, its employees and customers.
Against this background, we have decided to make a final offer of SEK 53 to all shareholders, providing an opportunity to exit their investment at a very attractive valuation.
Alta Fox Capital Management, currently representing 3.34% of Enlabs’ total shares, had proposed an alternative offer of SEK55 per Enlab Share. While Entain’s latest offer doesn’t match the SEK55 suggested, Entain is reportedly very confident that they will take it home. Wood explained:
We are pleased that shareholders with around 51% have now irrevocably agreed to accept the offer and would urge other shareholders to do the same by 18 March.
Just last month we reported Entain was in discussions to acquire Australia’s biggest gambling company, Tabcorp’s Betting and Media arm, in bid to expand their portfolio.
Source: SBC News
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