Enlabs takeover by Entain likely to close with €365m cash offer

After Enlabs AB rejected the initial offer from Entain Plc back in January, claiming that it was ‘unsatisfactory and undervaluing’, Entain has revised it and proposed a new valuation to Enlabs shareholders.

Entain’s offer has now been increased from SEK40 to SEK53 per share and the new proposed €365 million valuation is meant to be final and won’t be increased.

The initial offer was approved by the chairman Niklas Braathen but the US investors didn’t believe it’s satisfactory and rejected it. "This offer materially undervalues the company, represents a negligible premium of 1.1% to the pre-offer trading price and has unusual circumstances that make us question why Enlabs' Chairman, Niklas Braathen, accepted such an inadequate offer," Alta Fox said.

The minimum price suggested by the investors lied at around the SEK 55 mark per share. Entain hopes to meet them in the middle offering SEK 53 as their final bid. The majority of Enlabs shareholders have already backed the new improved offer and are confident that the remaining shareholders will do the same. The acceptance period has been extended until 18 March in order to allow enough time to secure all necessary approvals. Having said that Entain, hopes to finalize the takeover by end of March.

According to Rob Wood – Entain’s CFO  and chief executive “Entain will be the best home for Enlabs, its employees and customers.” He added that - “Against this background, we have decided to make a final offer of SEK53 to all shareholders, providing an opportunity to exit their investment at a very attractive valuation.

“We are pleased that shareholders with around 51% have now irrevocably agreed to accept the offer and would urge other shareholders to do the same by 18 March.”

Enlabs’ independent bid committee has officially communicated to Entain that they will make a recommendation to the shareholders to accept the new increased offer. The final official decision will be announced no longer than a week before the announced deadline on the 18 of March.

Entain plc, which is also known as recently rebranded GVC Holdings is one of the world's biggest sports betting and gambling companies. It operated both in the online and retail sectors. They are known for operating very strong and well-known brands such as Ladbrokes, Coral, BetMGM, bwin, Sportingbet, Eurobet,  partypoker, partycasino, Gala and Foxy Bingo. The company is licensed and operates in more than 20 countries, across five continents around the globe.