Entain’s Bwin Holdings Tabled Cash Bid to Enlabs Shareholders

Global sports betting and gaming group Entain plc announced today its wholly-owned Malta-based subsidiary Bwin Holdings tabled a cash offer of SEK40 per share to shareholders of Enlabs AB.

Bid Unanimously Recommended to Enlabs Shareholders

The proposed bid which values Enlabs at around SEK2.8 billion was endorsed by the Independent Bid Committee of the Nasdaq First North-traded company, whose members unanimously recommended to Enlabs shareholders to accept the offer.

The offer which represents a premium of 42.3% compared to the SEK28.12 volume-weighted average share price of the company for the last 180 days prior to the announcement, 15.6% premium to the SEK34.61 volume-weighted average share price for the last 90 days prior, as well as 1.1% to the SEK39.55 closing daily price on the last day prior, was already accepted by shareholders holding 42.2% of Enlabs shares.

“The acquisition of Enlabs is perfectly aligned with our strategy of expanding across new regulated international markets. We are hugely excited by the growth opportunities it presents both in its existing markets and through new market opportunities.”

Shay Segev, CEO, Entain

No Restructuring or Material Change

Entain noted its future plans did not include any material changes to Enlabs’ organization, management and employees, as well as no change in locations for the operations for the established in the Baltics entity. According to total revenue data, Enlabs holds the leadership in Latvia, is second largest in Estonia and among top 5 in Lithuania. Recently, Enlabs decided to voluntarily give back its licenses in Sweden.

“When Entain’s interest to acquire Enlabs emerged, we instantly saw the strategic logic. Our interaction with them so far has confirmed they will provide an excellent home for the company, its customers and employees.”

Niklas Braathen, Chairman, Enlabs

Moreover, Entain noted the combination would help accelerate on Enlabs’ growth ambitions within its existing markets as well as expand into adjacent ones such as Belarus and Ukraine, while the combined expertise would deliver an enhanced offering to Enlabs’ customers.

“Enlabs is already a strong and rapidly growing business in its own right, but we now have a fantastic opportunity to turbocharge its growth by leveraging the power of our unparalleled proprietary technology, scale, product and marketing expertise.”

Shay Segev, CEO, Entain

By leveraging its scale, proprietary technology, marketing approach and products, Entain would seek to create long-term positive effects for stakeholders and employees of Enlabs, with the strong belief that scale and diversification are essential for the creation of shareholder value in highly competitive and regulated industries.

“Entain’s experience and track record in many different geographic markets, together with its market-leading proprietary technology and world-class marketing skills are key attractions for Enlabs as we look to grow in the Baltics and beyond.”

Niklas Braathen, Chairman, Enlabs

The proposed bid would have an acceptance period starting around January 21, 2021 and would be on the table until February 18, 2021, when it will expire.