Reacting to press speculation about a takeover, major sports betting and gaming group Entain has confirmed that it is considering an approach from MGM Resorts International.
MGM is Entain’s partner in the US market and the approach suggests a possible offer to acquire Entain, said the company in a statement today.
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 Entain 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.
Entain’s portfolio of brands includes bwin, Coral, Crystalbet, Eurobet, Ladbrokes, Sportingbet, Foxy Bingo, Gala, Gioco Digitale and partypoker.
