Login/Register
NetEnt
NetEnt
BetConstruct
BigTimeGaming

Entain shares soar after rejecting bid from US partner MGM Resorts

4th January 2021 10:26 am GMT
Entain
Playtech

London-listed gaming operator Entain (formerly GVC Holdings) has rejected a £8.1bn acquisition offer from its US partner MGM Resorts International.

In response to press speculation over the weekend, Entain confirmed Monday that it has received proposals from MGM Resorts concerning a possible offer for the business.

The most recent proposal saw MGM Resorts offer 0.6 of its own shares for each Entain share. Based on the closing price on 31 December 2020, the last trading day prior to the announcement, the proposal represents a price of 1,383.00 pence per Entain share and a premium of 22 per cent over Entain’s share price, valuing the business at around £8.1bn.

The proposal would have given Entain shareholders ownership of approximately 41.5 per cent of the enlarged MGM Resorts, with the US casino operator indicating that a limited partial cash alternative would also be made available to Entain shareholders.

However, Entain has informed MGM Resorts that the proposal significantly undervalues the company and its prospects. The board has also asked MGM Resorts to provide additional information in respect of the strategic rationale for a combination of the two companies.

Under the UK’s City Code on Takeovers and Mergers, MGM Resorts must announce a firm intention to make an offer for Entain by no later than 5pm on 1 February.

Shares in Entain plc (LSE:ENT) soared by 26.07 per cent to 1,429.00 pence per share in London Monday morning, while shares in MGM Resorts International (NSQ:MGM) closed up 1.03 per cent at $31.51 in New York Thursday (Dec. 31).

Related Videos
BTObet
Wazdan
G2E
Sportradar
Greentube
Digitain
NetEnt
BigTimeGaming