Entain Stands By £250m Buy-Out Offer To Enlabs

In its bid to acquire leading Baltic online gambling company Enlabs AB, the board of Entain Plc has stood by its preferred offer of SEK 40 (£ 3.50) cash per share.

Entain announced this morning that it had extended its ‘acceptance period’ offer until 18 March 2021, with the FTSE100 group further announcing that it expects ‘deal settlement’ to begin on 30 March should the shareholders of Enlabs accept its cash offer of £ 250 million.

Enlabs acquisition conditional

Entain’s board communicated: “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.”

Despite Enlabs US investor Alta Fox calling on counterparts to reject the bid, which it considered had materially undervalued the firm as stands, Entain retains its offer unchanged.

Texas hedge fund Alta Fox has reported that it carries the support of ‘over 10 percent of Enlabs’ investors, requesting that Entain dramatically revise its bid.

A counter-offer has been proposed by Alta Fox, demanding that Entain price Enlabs at a minimum of SEK 55 per share, valuing the firm at £ 340 million.

Extended acceptance time

Entain’s board emphasised in this morning’s statement that the ‘acceptance time’ had been extended for the deal to meet the required approvals from the relevant authorities.

The £ 250 million bid from Entain is funded by Niklas Braathen, chairman of Enlabs, who holds 20 percent of the company’s shares through Erlinghundra AB, a private investment fund.