Entain increases Enlabs takeover bid to €365m
Entain Plc has announced its increase of the offer price it presented for the Enlabs AB takeover from SEK 40 to SEK 53 for every share. This new offer means that the company is offering an increased deal worth €365 million, and the company also stated that this is the final bid and it will absolutely not change or rise.
Niklas Braathen, the company’s chairman, did approve of the original deal, which was a €280 million cash offer. However, Enlabs shareholders, more specifically US investors who are led by Alta Fox, refused to accept the offer. They claimed that the offer was undervaluing the company since it had a pretty good presence within the Baltic markets.
The hedge fund currently represents about 10% of the latter’s shareholders, and it said that Entain needs to offer a minimum share price at SEK 55 for each share, which would mean that the company is worth €390 million.
Rob Wood, the Group CFO and Deputy leader, announced Entain’s new cash offer of SEK 53 per share earlier today after it extended its acceptance period until the 18th of March.
Wood went on to state:
“In a highly competitive and regulated industry, where consolidation is a key theme, Entain is able to provide the scale and platform needed to further support Enlabs’ long-term growth. We firmly believe that Entain will be the best home for Enlabs, its employees and customers. Against this background, we have decided to make a final offer of SEK 53 to all shareholders, providing an opportunity to exit their investment at a very attractive valuation.”
Despite the fact that the new offer still does not equal the SEK 55 price that the hedge fund is seeking, Entain is still quite confident that the offer will be accepted since 51% of the company’s shareholders have already voiced their acceptance of the deal and were hoping more of them will also be agreeing by the deadline.