MGM Resorts ready to commit £8.1bn to takeover Entain
CompanyEnttain confirmed it had received a takeover bid from US casino giantMGM Resorts International. Entain, formerly known as GVC Holdings, operates several betting-related brands, including Ladbrokes, Coral and SportingBet.
However, brand bosses said the $8.1 billion offer from one of the world's leading gambling sterling "significantly underestimates the company and its prospects."
The official response also stated: "The Board has asked MGMRI for more information regarding the strategic rationale for the combination of the two companies."
It is worth noting that on Monday, January 4, Entain's share price skyrocketed following the news of a possible deal, climbing more than 26% (to 1434 points).
The Wall Street The Journal reported that the full cost of the proposal has not yet been announced. The size of the deal is likely to come from a price per share of £12.85 ($17.56). If the owners of Entain accept the offer, the company will significantly increase its presence in both the online gambling and land-based casinos.
Experts agree that this deal will be similar to Caesars Entertainment's acquisition of William Hill . Then the deal amounted to $ 4 billion, and officially the parties will shake hands in March.
David Brohan, gambling analyst at Goodbody, said the MGM-Entain team-up was not a surprise. He noted: “The ability to bet and gamble is something that the big US gaming companies want to fully control. And Caesars' actions with William Hill last year are a clear example of this.”
As a reminder, Caesars Entertainmentoffered £2.9bn for William Hill.