22nd Sep 2021 08:26
(Alliance News) -Â Entain PLC on Wednesday shed more light on the takeover interest received from DraftKings Inc, and said it is mulling the latest proposal.
Entain on Tuesday afternoon, responding to a CNBC report, confirmed it had received a takeover approach from New York-listed fantasy sports and online betting firm Draftkings. It said it had received a cash and shares proposal, though did not outline any other terms of the tilt.
On Wednesday, it elaborated on DraftKings's interest. It confirmed it received an earlier approach worth 2,500 pence per share - the price reported by CNBC on Tuesday - made up in stock and cash, which was rejected.
It then received a further proposal on Sunday, this time worth 2,800p per Entain share - a premium of 46% to Monday's closing price. This offer consisted of 630p in cash and the rest in DraftKings shares.
Entain shares extended gains into Wednesday. The stock was up 8.1% at 2,443p in London in early dealings, after surging 18% on Tuesday. The stock closed at just 1,915.5p on Monday.
With around 585.6 million shares in issue, the latest DraftKings approach values Entain at around GBP16.4 billion.
Draftkings went public last year, foregoing a traditional IPO and instead merging with a special purpose acquisition company. The stock closed down 7.4% in New York on Tuesday at USD52.77, giving it a market capitalisation of USD22.99 billion.
Entain said: "The board of Entain strongly believes in the future prospects of the company underpinned by its leading market positions, world class management team and industry-leading technology. The company has a strong track record of growth and runway for further significant growth."
The FTSE 100-listed firm also highlighted its position in the rapidly growing North American market through its BetMGM joint venture. Sports betting is being legalised in many states for the first time following a Supreme Court ruling in 2018, allowing UK bookmakers - experienced in sports betting - to tap into the lucrative market there.
Entain said it would "carefully consider" the DraftKings proposal and a further announcement will be made as and when appropriate. Shareholders were urged to take no action in the meantime.
It is not the first time Entain has received interest from the US. The company, which also owns the Coral and PartyPoker brands, rebuffed a takeover tilt from casino operator and US partner MGM Resorts International.
By Lucy Heming;Â [email protected]
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