FILE PHOTO: March 18, 2020, Overview of the Ladbrokes shop in Harpenden, England. Reuters / Peter Zibora / FILE PHOTO
September 22, 2021
(Reuters) – Enten’s stake rose 10% to a record high on Wednesday after a gambling company announced a $22.4 billion acquisition offer from US-based DraftKings. This was twice the bid rejected by MGM earlier this year.
UK Group’s share price reached £24.9 after the opening bell of the Great Britain Index, compared to DraftKings’ proposed £28 per share. That’s a 46.2% premium to Monday’s closing price for Enten.
Casino Group is also pricing the market with the prospect of another bid from MGM, which Enten has a joint venture with in the United States. Anten rejected MGM’s $11 billion outlook in January.
By 0745 Greenwich Mean Time, Anten’s share price had risen 8% to £24.4.
Dealmaking in online games is on the rise as the United States opens its doors to sports betting, players are expanding and taking advantage of the expertise of foreign companies that have been active in the market for a long time.
Caesars Entertainment acquired William Hill in the United Kingdom in a £2.9 billion transaction earlier this year.
Analysts at JPMorgan said that DraftKings’ proposal for Anten to relinquish MGM’s desire to control BetMGM, a joint venture with Anten, should be attractive.
MGM said Tuesday that transactions that leave Enten with competing businesses in the United States will require MGM’s consent.
(Reporting by Muvija M from Bengaluru, edited by Jason Neely and Mark Potter)
Record Hits With $22 Billion Offered By DraftKings
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