Gambling titan Entain Plc has confirmed that another casino giant MGM Resorts International has sent an $11 billion dollar offer to it. Entain also said that it had turned the received offer down, stating the price is too low.
This event is identical to a takeover proclaimed only a few months ago when William Hill, a British rival of Entain, accepted a 2.9-billion-pound offer from Caesers Entertainment, Inc. Under MGMs offer, first purported by the Wall Street Journal on Sunday, the casino conductor offered .6 shares for every Entain share, rating the FTSE 100-listed multi-brand gaming operator at 1,383 p per share. The proposal showed a 22% premium to Entain’s previously close on Dec 31, 2020.
Entain rejected MGM’s offer saying the casino operator that it thinks the proposal remarkably undervalues Entain and its prospects. It is perceived that MGM had tabled a $10ball money offer before Entain last year, which Entain rebuffed.
MGM is now seeking to expand its business as its rival Caesars is now working toward drawing a close to the acquisition of William-Hill by this year’s first quarter’s end. Caesars currently secured a US antitrust license for the contract and now requires sanction from gambling regulators in multiple states to finalize it.
Entain Acquisition Gets Backed by MGM’s Largest Shareholder
Einstein said that it had asked MGM to give additional data on the methodical rationale for the potential merge of the two gaming companies. However, there could be less certain that a higher new offer would be proposed by the American casino operator.
Had it granted MGM’s latest proposal, Entain’s shareholders would have possessed about 41.5% of the expanded group. Entain formed approximately $200 million ventures jointly with MGM only in 2018. All these ventured were formed shortly after the Supreme Court ordered a federal prohibition on sports betting to make its way for the validating of the practice in more than twenty-four states.
