The owner of Bwin and Ladbrokes rejects an offer of more than 9,000 million from the MGM casino group

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MGM Group Aria and Bellagio Resorts HAMILTON, STACY (FILE photo) 8/5/2020

The British firm Entain, owner of bookmakers such as Bwin or Ladbrokes, has confirmed a proposal from the US group MGM Resorts International (MGMRI) with a view to launching a possible purchase offer of around 8,100 million pounds (just over 9,000 million euros), which the European company considers insufficient.

“Entain has informed MGMRI that it believes that the proposal significantly undervalues ​​the company and its prospects,” announced the British company, which has asked MGMRI for additional information regarding the strategic reasons for the combination of the two companies.

Under the terms of the most recent proposal, the American multinational gambling company, MGMRI would pay 0.6 of its shares for each Entain share, which represents a value of 1,383 pence per share, according to the share price at the end of 2020, with a 22% premium on the value of Entain securities.

In this way, Entain shareholders would own about 41.5% of the new MGMRI, which has indicated the possibility of a limited alternative for payment in cash to Entain shareholders.

At the end of 2020, the US casino operator Caesar reached an agreement to acquire for 2.9 billion pounds (3.225 million euros) the British bookmaker William Hill.

Under UK regulation, the American MGMRI has until February 1 to formalize its offer or announce its withdrawal.

© 2021 Europa Press.

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