Entain has revised its offer to acquire the Baltic facing company Enlabs.
This morning the online gambling giant Entain, increased its offer for Enlabs from SEK40 per share to SEK53, valuing the Baltic-facing business at SEK3.7bn (£314.6m/€363.9m).
This comes after Entain extended the acceptance period for its offer to acquire Enlabs until 18 March 2021 last month.
Entain’ and Enlabs
Entain’s first bid to acquire Enlabs came in January with an offer to pay SEK40 for each Enlabs share on the Nasdaq Nordic exchange. This would have valued the acquisition at SEK2.8bn which, approximately £250m.
Entain’s board and shareholders owning 42.2% of Enlabs were happy with the initial proposal but a group of minority shareholders in Enlabs argued that the bid undervalued the business.
Shareholders owning 10.7% of Enlabs rejected Entain’s £250m bid to take over the company as it “materially undervalues” the business.
US-based hedge fund, Alta Fox Capital Management, which owns 2,332,625 shares in Enlabs, or 3.34% of the total shares in the business, said it does not intend to tender any shares at that price.
The US-based investor called for Entain to revise its offer and proposed a counter offer which would see Entain pay 55SEK per share, valuing the company at £340 million.
Entain’s final offer
Entain has now revised its bid to acquire Enlabs at a price of SEK53 per share and would value the Baltic company at SEK3.7bn. The offer acceptance period will still run until 18 March.
According to the Entain, this revised bid will be its final offer for Enlabs and the offer “will not be increased.”
Enlabs’ independent bid committee told Entain it would recommend that Enlabs shareholders accept the revised offer and a formal statement should be made no later than one week before the expiration of the acceptance period.
A total of 51.0% of shareholders with shares and votes in Enlabs have backed the new offer.
Entain chief financial officer and deputy chief executive Rob Wood said: “Entain will be the best home for Enlabs, its employees and customers.
“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.”