The board of Entain Plc has stood by its recommended offer of SEK 40 (£3.50) cash per share, in its bid to acquire leading Baltic online gambling group Enlabs AB.
This morning, Entain confirmed that it had extended its offer ‘acceptance period’ until the 18 March 2021, with the FTSE100 group further stating that it anticipates ‘deal settlement’ to commence from 30 March should Enlabs shareholders accept its £250 million cash offer.
“The Offer and the acquisition of Enlabs 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,” Entain’s board communicated.
As stands, Entain maintains its offer unchanged, despite Enlabs US investor Alta Fox calling on counterparts to reject the bid, which it deemed had ‘materially undervalued the company’.
Demanding that Entain drastically revise its offer, Texas hedge fund Alta Fox has stated that it carries the support from ‘more than 10% of Enlabs’ investors.
Alta Fox has proposed a counter-offer, demanding that Entain price Enlabs at a minimum of 55 SEK per share – valuing the company at £340 million.
In this morning’s statement, Entain’s board underlined that the ‘acceptance period’ had been extended for the deal to fulfil its necessary approvals from relevant authorities.
Entain’s £250 million offer carries the support of Enlabs chairman Niklas Braathen who maintains 20% of company shareholdings through private investment firm Erlinghundra AB.