On Monday, in a statement Entain Plc said, it has received a $11 billion bid proposal from U.S. casino operator MGM Resorts which significantly undervalued its business.
In this latest transatlantic move which sees consolidation in the sector MGM Resorts’ bid of 1,383 pence per Entain share amounts to a total deal value of $11.08 billion (8.09 billion pounds), and represents a premium of 22% to Entain’s last closing price.
With the U.S. seen as the next big growth market for the sports betting space, has given rise to a series of transatlantic partnerships which taps into European expertise with Caesars Entertainment 2.9 billion pound acquisition of Britain’s William Hill, which was announced in September 2020, being the latest case in point,
In a statement Entain said, it had received multiple proposals from MGM, with the most recent one being an offer of 0.6 of its shares for each Entain share.
If the deal goes through, the British company’s shareholders would own around 41.5% of MGM.
On its part, MGM has indicated that a limited partial cash alternative would also be made available to Entain shareholders.
($1 = 0.7301 pounds)