Facing internal shareholder disagreements, Enlabs will have until March 18, 2021 to decide whether it wants to accept a SEK 2.8 billion acquisition offer from Entain.
Entain Extends Acceptance Period for Enlabs Acquisition
Entain Plc’s attempt to acquire Enlabs AB, one of the world’s foremost gambling groups, is experiencing a few potholes on the road to progress. With Enlabs AB seeing the bid as insufficient, Entain has been steadfast in its position that the proposed SEK 40 per share should fit the bill.
Upholding this position, Entain posted an update on the matter, saying that it would expand what it describes as an acceptance period through March 18, 2021, and a deal settlement may begin shortly after, on March 30, should the SEK 2.8 billion the NASDAQ First North-listed operator clear shareholder approval.
Entain has further communicated in the statement that its offer has been based on a careful look at regulatory, governmental and other clearances, approvals and decisions, including from competition and gaming authorities.
Hear My Counter-Proposal
While former-GVC Holdings upholds its build, though, Enlabs US investor Alta Fox has been adamant in its rejection of the proposal, seeking support from other shareholders.
Alta Fox has cautioned Entain that should the company wants to see the deal go through it would need to revise the conditions of the proposal, and warned that it has the support of at least 10% of shareholders.
The hedge fund has saved Entain the number-crunching, offering a revised offer instead, worth SEK 55 per share and pushing the total cash offer to SEK 3.9 billion. Yet, Entain has good reason to believe that it may yet find the support it needs, with Enlabs chairman Niklas Braathen supporting the original offer.
Braathen has a 20% stake in the company through Erlinghundra AB and he may yet garner additional support and meet the acceptance period deadline. The story is developing.