Entain to consider improved acquisition offer from DraftKings22nd September 2021 8:07 am GMT
The board of Entain has said it will consider DraftKings’ $22bn offer to acquire the business, while also highlighting the strength of its existing business and US joint venture with BetMGM.
The board of directors said they would carefully consider the £28 per share offer from DraftKings, having rejected a £25 per share offer from the company a week ago.
The improved offer is comprised of £6.30 in cash and the balance in new DraftKings’ shares, with the total offer price representing a 46.2 per cent premium on the closing price of Entain shares on Monday, 20 September.
“The Board of Entain strongly believes in the future prospects of the company underpinned by its leading market positions, world class management team and industry-leading technology,” said the board.
“The company has a strong track record of growth and runway for further significant growth as set out in the capital markets day on 12th August, with the potential for its total addressable market to grow by more than three times to $160bn.
“This includes its leadership position in the rapidly growing North American market through its Joint Venture BetMGM”.
The company added that it has the most diversified and regulated revenues of any of the global operators and leads the industry in player protection through its ARC programme (Advanced Responsibility and Care).
Under the City Code on Takeovers and Mergers, DraftKings has until 19 October to announce whether it intends to make a firm offer for Entain.
Shares in DraftKings Inc. (NSQ:DKNG) closed 7.42 per cent lower at $ 52.77 per share in New York Tuesday, while shares in Entain plc. (LSE:ENT) closed 18.04 per cent higher in London at 2,261.00 pence per share.