After investor pressure, gambling giant Entain revises its offer to acquire Enlabs

Powerhouse gaming and sports betting company Entain has increased its offer for Enlabs after some of the Swedish gambling company's shareholders scoffed at the first price.

Entain, formerly known as GVC Holdings, said on Monday that it has increased its initial offer from SEK40 to SEK53.

Enlabs is now valued at about SEK3.7 billion, or roughly £316 million, according to the current price. According to the large gambling operator, the increased offer is definite and won't be changed again.

Midway through January, Entain initially revealed its intentions to buy the rival organization. 42.2% of the shareholders of the latter firm accepted the offer of SEK40 per share. Hedge funds in possession of more than 10% of its shares, however, rebelled against that pricing, claiming that Enlabs was being undervalued.

These hedge funds stated that a price of less than SEK55 would not be acceptable. On Monday, it was revealed that they were in favor of the improved offer. Entain confirmed that the shareholders who hold 51% of the shares of its target for purchase had agreed to accept the higher price. By March 18, the corporation must get the support of 90% of Enlabs' shareholders.

Rob Wood, the CFO and deputy CEO of Entain, responded to the most recent news by saying that his company is "able to provide the scale and platform needed to further support Enlabs' long-term growth, and we firmly believe that Entain will be the best home for Enlabs, its employees, and its customers."

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With brands including Optibet, Laimz, Bestpoker, and Ninja Casino in its portfolio, Enlabs is a gambling operator with rapid expansion. The company has a strong presence in Lithuania, Latvia, and Estonia and is particularly interested in the Baltic region.

It purchased neighboring operator Global Gaming late last year in a SEK150 million agreement. For the latter, who was recovering from a terrible year at the time the acquisition was finalized, the move meant a new direction. Global Gaming's license in Sweden was revoked in the summer of 2019, and Swedish courts steadfastly rejected all of the company's attempts to reenter the local market.

When Enlabs acquired Global Gaming, it voluntarily gave up its Swedish licenses to the local authority and informed them that it would reapply in 2021 after Trustly's Pay N Play technology was integrated into its platform.

The past several months have been extremely busy for Entain. Ladbrokes and partypoker's parent firm underwent a corporate redesign and declared its withdrawal from all unregulated markets. It also turned into a takeover target for MGM Resorts International, another joint venture partner engaged in US sports betting.

The large casino group launched a $11 billion buyout bid in January, but Entain rejected it on the grounds that it materially undervalued the business.

Shay Segev, Entain's longtime CEO, unexpectedly left the gaming titan while it was attempting to reject MGM's offer. In the summer of 2020, Mr. Segev succeeded Kenny Alexander as the organization's longtime leader.

The company was acknowledged as one of a select group of bidders for the betting and media division of Australian gaming goliath Tabcorp last month.