Entain is given the go-ahead from the appropriate authorities to buy Enlabs
In early January, the owner of Ladbrokes and Coral made an approach to buy Enlabs in a cash transaction estimated at SEK 2.8 billion ($328.4 million).
Alta Fox Capital Management, which owns 3% of Enlabs, said the offer "materially undervalued" the company. Minority shareholders who control an 11% interest in the operator, however, rejected the offer worth SEK 40 for each Enlabs share.
Entain upheld its valuation and gave Enlabs until March 18 to accept the offer; however, last week, the operator boosted its offer by 33% to SEK 53 per share, which Entain then deemed to be the final amount. Since then, 51% of Enlabs' stockholders have supported the current offer.
Entain has now announced that it has obtained all essential clearances from the appropriate gaming and competition authorities, indicating that all requirements have been satisfied and the transaction may proceed to its closing.
According to a statement from Entain, the acceptance period for the offer will end on March 18, 2021, at 17.00 CET. Entain maintains the right to postpone the date of settlement as well as to prolong the offer's acceptance time.
On March 4, Entain announced a profit of £113.8 million ($157.8 million) for the whole 2020 fiscal year, a significant increase above the loss of £!31.2 million in 2019. Revenue remained constant at £3.6 billion.