Ladbrokes owner Entain receives $11 billion takeover offer from MGM By Reuters

© Reuters. FILE PHOTO: The Circus Circus hotel and casino is seen along the Las Vegas strip

(Reuters) -Ladbrokes owner Entain Plc said on Monday an $11 billion bid proposal from U.S. casino operator MGM Resorts (NYSE:) significantly undervalued its business in the latest transatlantic move in a fast consolidating sector.

The proposed offer of 1,383 pence per Entain share implies a total deal value of 8.09 billion pounds ($11.08 billion), according to a Reuters calculation. It represents a premium of 22% to Entain’s last close.

The United States is seen as the next big growth market for sports betting, spawning a series of transatlantic partnerships tapping into European expertise such as Britain’s William Hill being bought by Caesars (NASDAQ:) Entertainment in a 2.9 billion pound deal announced in September.

Entain said it received multiple proposals from MGM, with the most recent one being MGM’s offer of 0.6 of its shares for each Entain share.

The British company, previously known as GVC, said its shareholders would own about 41.5% of the enlarged MGM.

MGM has indicated that a limited partial cash alternative would also be made available to Entain shareholders, the company said. ($1 = 0.7301 pounds)

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Be the first to comment

Leave a Reply

Your email address will not be published.