Entain reveals full offer for igaming operator Enlabs

Entain has offered SEK40 per share for each of Enlab’s 69.9m shares.
Entain has offered SEK40 per share for each of Enlab’s 69.9m shares.

The UK gaming giant has offered €276.4m for the Baltic-facing operator.

UK.- Entain has revealed details of its SEK2.80bn (€276.4m) offer for Sweden’s Enlabs, which runs the Baltic-facing igaming site Optibet.

It has offered SEK40 per share for each of Enlab’s 69.9m shares, a premium of 1.1 per cent on Enlab’s closing price per share (SEK39.55) on Nasdaq First North the day before it made its offer on January 5.

Entain made the offer in a bid to gain access to the Baltic market. Enlabs is the market leader in Latvia, second in Estonia and within the top five in Lithuania.

In turn, it said the deal would help Enlabs enter new markets such as Ukraine, which legalised gambling last year, and Belarus. 

The British gaming giant, formerly GVC Holdings, has the objective of generating 100 per cent of its revenue from regulated markets by the end of 2023.

To date, 42.5 per cent of Enlabs shareholders, including real estate business Erlinghundra AB and investment fund Atletico Nordic BV, have agreed to the offer.

However, 10.7 per cent of shareholders believe the deal undervalues the business. They also remain concerned about the recent resignation of Entain’s CEO Shay Segev.

See also: Entain shares plunge as MGM Resorts rules out firm offer

Entain said: “In a highly competitive and regulated industry, Entain believes scale and diversification is essential to continue to create shareholder value.

“Entain places great value on Enlabs’ organisation and, by leveraging Entain’s scale, proprietary technology, marketing skills and products, will drive further growth in order to create long-term positive effects for Enlabs employees and other stakeholders.

The Baltic region represents a highly attractive, locally regulated and fast-growing gaming market. Entain does not currently operate in these geographies and entry is aligned with Entain’s strategy to focus on growth markets which are locally regulated and taxed. 

“The acquisition of Enlabs represents a synergistic combination with a preeminent operator, with high operating standards and a market-leading customer proposition.”

Entain said it did not intend to make changes to Enlabs’ management or workforce. Current chairman Niklas Braathan would stay on to grow operations in the Baltic and Nordic regions and oversee expansion into Eastern Europe, it said.

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