19th Oct 2021 18:04
(Alliance News) - Entain PLC said on Tuesday it remains in talks with US suitor DraftKings Inc over a potential merger after the UK Panel on Takeovers & Mergers gave more time for a deal to be reached.
The Boston, Massachusetts-based sports betting firm said the UK Takeover Panel's deadline to make firm offer for Entain has been extended to November 16.
The DraftKings proposal comprises 2,800 pence per Entain share consisting of 630p in cash and the balance payable in new DraftKings Class A common shares.
Entain said it has been in discussions with DraftKings in order to explore the merits of a potential transaction. but noted there were matters to be resolved that are fundamental to the structure.
These include terms for any proposed technology supply agreement to BetMGM and MGM and governance rights and value protection for the combined entity's stake in BetMGM. Entain co-owns the BetMGM joint venture 50:50 with its Las Vegas-based peer.
Entain shares closed up 2.3% at 2,172.09 pence on Tuesday in London. Draftkings was up 0.5% in New York.
By Arvind Bhunjun; [email protected]
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