Prominent iGaming and sportsbook operator Entain is reportedly standing by its $336.7 million offer to purchase smaller Baltic-facing competitor Enlabs AB after extending the acceptance period for a further month to March 18.
According to a report from Gambling Insider, the Isle of Man-based firm is already responsible for a plethora of iGaming brands including Bwin, Ladbrokes, PartyPoker and SportingBet while partnering with MGM Resorts International to run the BetMGM platform in the United States. The source detailed that the operator suggested a takeover on January 7 that would see it pay Enlabs AB investors some $4.76 for every individual share they hold in the Stockholm-listed entity.
This initial proposition was reportedly then slated by groups holding an aggregate 11% stake in Enlabs AB over concerns that it ‘materially undervalues’ the operator behind the Optibet-branded family of iGaming domains popular in the online gaming markets of Lithuania, Estonia and Latvia. One of these, the Texas-based Alta Fox Capital Management hedge fund, purportedly later explained that it would only be prepared to entertain an offer for its 3.3% holding if the individual share valuation was bumped up to around $6.61.
However, Entain has now reportedly responded to these concerns by calling its initial offer ‘acceptable’ and extending the approval cut-off date beyond its initial February 18 deadline. The firm, which was formerly known as GVC Holdings until undergoing a December name-change, purportedly moreover pronounced that it could officially begin its acquisition of Enlabs AB by the end of next month should all of the deal’s conditions be satisfied by March 23.
Reportedly read a statement from Entain…
“The offer and the acquisition of Enlabs AB is conditional on, among other things, the receipt of all necessary regulatory, governmental or similar clearances, approvals and decisions including from competition authorities and gaming authorities in each case on terms which, in Entain’s opinion, are acceptable.”