LeoVegas shareholders accept MGM Resorts takeover offer
MGM Resorts says that 96 per cent of LeoVegas shareholders have accepted the deal.
Sweden.- MGM Resorts has announced that its €600m offer to buy Sweden’s LeoVegas has been accepted by 96 per cent of the operator’s shareholders. The company had offered SEK61 (€5.90) cash-per-share back in May. The transaction is expected to go ahead on or around September 7.
MGM Resorts’ CEO and president Bill Hornbuckle said: “The completion of this transaction represents a major milestone for MGM Resorts as we continue to pursue our strategy of growing our online gaming footprint worldwide.
“We look forward to welcoming the LeoVegas team and are excited to begin working with them to grow our global digital gaming business and maximise the full potential of our omnichannel strategy.”
LeoVegas co-founder and CEO Gustaf Hagman had recommended shareholders accept the deal, which is MGM’s first igaming acquisition outside of the US. MGM says the acquisition forms part of its aim to become a ‘globally-scaled and dominant’ online gambling business.
MGM said LeoVegas’ executive management team would remain in the company having “demonstrated the ability to develop a robust and scalable technology platform with advanced product offerings”.
LeoVegas Group CEO Gustaf Hagman said: “Joining forces with MGM Resorts is a major win for LeoVegas and we’re excited to begin working with our new teammates to build upon the work we’ve done over the last ten years.
“MGM Resorts is a premier gaming entertainment company and we look forward to leveraging their expertise to further our long-term strategic goals.”
Earlier this month, the British Gambling Commission issued LeoVegas with a warning and a £1.2m penalty for social responsibility and anti-money laundering failings. The regulator found that the Swedish operator had “not sufficiently taken into account the Commission’s 2019 guidance on customer interaction” and had not enforced its policy of interacting with customers who displayed signs of gambling harm.
It also found that the company, which operates LeoVegas, Bet UK, Pink Casino, Slot Boss and 21.co.uk, had relied on ineffective threshold triggers and inadequate information on income or wealth for its AML duties. It said the financial triggers were too high for effective risk management and allowed significant spending in short periods of time.
Meanwhile, LeoVegas plans to enter the Dutch regulated igaming market in Q4.