Entain, owner of the brand Ladbrokes, said Monday that it has received from MGM an £8.09 billion takeover proposal, equivalent to $11.06 billion.
MGM Resorts International is seeking to buy British gaming company Entain, in the latest move by a casino operator to double down on the red-hot online-gambling business.
Entain, which owns the British gambling brand Ladbrokes, said Monday that it has received an £8.09 billion takeover proposal, equivalent to $11.06 billion, but said that the offer significantly undervalues the company. MGM’s bid has the financial backing from its largest shareholder, IAC/InterActiveCorp, IAC according to people familiar with the matter, and comes after an earlier roughly $10 billion all-cash overture for Ladbrokes was rebuffed.
The Wall Street Journal first reported on MGM’s takeover approaches on Sunday before the company disclosed details in a regulatory filing.
MGM is Entain’s partner in the US market.
The proposal is that MGM would offer 0.6 of its shares for each Entain share, valuing each Entain share at 1,383 pence, plus a premium of 22 per cent. Entain shareholders would then hold about 41.5 per cent of the enlarged MGM group.
A limited partial cash alternative would also he made available to Entain shareholders.
The board states that it considers that the MGM offer significantly undervalues the company and its prospects and has asked MGM to provide additional information on the strategic rationale for a combination.
The British company’s portfolio of brands includes bwin, Coral, Crystalbet, Eurobet, Ladbrokes, Sportingbet, Foxy Bingo, Gala, Gioco Digitale and partypoker.
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