Following its offer of SEK40 per share in January, Entain confirmed today it increases the bid for Enlabs to SEK53 per share.
After the Initial Offer of SEK40, Now Enlabs Valued at £316 Million
Resolving to acquire Enlabs, Entain has now increased its bid to SEK53 per share, valuing Enlabs at £316 million.
Enlabs’ key shareholders refused Entain’s initial offer of SEK40 per share in January, defining it as “undervaluing” to the company as a market leader in the Baltic Region.
One of Enlabs’s more influential shareholders, Alta Fox Capital (3.7%), also rejected Entain’s initial offer that valued Enlabs at £250 million.
Initially, Alta Fox maintained Entain should propose a minimum offer priced at SEK55 per share. However, the fund has now accepted the new proposal at SEK53.
The revised proposal has gathered support from 51% of stakeholders, including Alta Fox Capital (3.7%), Hans Isoz (2.6%), and Enlabs’ chairman Niklas Braathen, who had already accepted the initial offer as well.
Isoz commented, “At this more balanced level, Entain still has an attractive upside, and we as shareholders get some future value in cash today.”
Enlabs’ Shareholders Are Divided in Half by Entain’s Proposition
Stakeholders who have already accepted the bid will now have until March 18 to convince the rest of Enlabs’ investors to also accept, with a projected close date of the deal – March 30.
Enlabs’ independent board and committee have also expressed their support for the company’s acquisition by Entain. Maintaining it would be the most beneficial outcome.
The company’s share price has increased more than 17% since the new offer was confirmed by Entain CFO and Deputy leader Rob Wood earlier today.
Wood detailed in his offer to Enlabs that Entain will further support the company’s long-term growth and provide the means and platform to make that growth happen.
Entain’s CFO maintained in the statement that the new offer, which values Enlabs at £316million, is final and will not be reviewed.
Slabs Could Expand in Neighboring Markets with Proper Support
Enlabs is headquartered in Riga, with offices in Malta, Marbella, Tallinn, Vilnius, Minsk, and Stockholm. It’s a leading gaming company in the Baltic and one of the largest operators in Lithuania, and the Latvian market leader.
Entain does not have any operations in that region currently, so a merger with Enlabs is in line with the company’s vision to grow in locally regulated and taxed markets, while for Enlabs it will facilitate successful expansion into near markets like Belarus and Ukraine.