19th Jan 2021 14:22
(Alliance News) - Ladbrokes Coral owner Entain PLC on Tuesday said US casino operator MGM Resorts International will not be making a firm offer following a possible takeover bid received at the start of January.
The proposed takeover offer was 0.6 MGM shares for each Entain share, which, based on closing prices on December 31, represented a value of 1,383 pence per Entain share and a premium of 22% to Entain's share price.
However, the FTSE 100-listed firm told MGM Resorts that the bid "significantly undervalues the company and its prospects".
Shares in Entain were down 15% at 1,202.00p in London on Tuesday. Shares in MGM were 5.6% higher pre-market in New York at USD31.46.
"Entain has a clear growth and sustainability strategy, backed by leading technology, that it is confident will deliver significant value for stakeholders. We look forward to continuing to work closely with MGM Resorts International to drive further success in the US through the BetMGM joint venture," said Entain.
MGM, in its own statement on Thursday, said it decided not to submit a revised proposal after "careful consideration" and "having reflected on the limited recent engagement between the respective companies".
"MGM is committed to being a premier global omni-channel gaming and entertainment company, and will maintain a disciplined framework while evaluating a range of compelling strategic opportunities," said MGM.
Entain plans to announce a fourth quarter trading update on January 21.
By Zoe Wickens; zoewickens@alliancenews.com
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