MGM Resorts International, the Las Vegas behemoth, has affirmed that it has submitted a bid to acquire online gambling operator Entain (formerly known as GVC Holdings), but stated that it is presently unable to ascertain whether it will present a formal proposal.
MGM has acknowledged the Entain merger proposition but is “uncertain” if it will make a formal offer.
As Entain announced earlier today, MGM Resorts has proposed a takeover of the operator, offering 0.6 MGM shares for each Entain share. This would value the Ladbrokes and PartyGaming operator at approximately $11 billion (£81.1 billion/€89.7 billion).
Under the agreement, Entain stakeholders would possess 41.5% of the merged MGM.
A cash alternative may also be available for Entain shareholders who do not wish to accept stock compensation. MGM’s largest stakeholder, IAC, has indicated that it may contribute to financing the deal.
MGM also provided an explanation for its belief that the deal is a favorable decision for Entain after Entain informed MGM that it believes the offer “significantly undervalues” the online operator.
It stated that this would enable the combined entity to fully leverage the expanding US market through complete control of the BetMGM joint venture.
MGM Resorts International’s assets will aid in establishing the firm as a frontrunner in global online and physical gaming, the operator stated, diversifying operations and positioning the merged entity for future expansion.
MGM Resorts is obligated to present a formal acquisition proposal by February 1st or declare its intention not to proceed. The land-based operator indicated it is presently “incapable of ascertaining” whether a formal offer has been submitted.
Entain, which underwent a rebranding from GVC in December, has a new chief executive, Shay Segev. The company asserted the new name more accurately reflects its revised strategy, which will prioritize regulated markets and environmental responsibility.
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