Entain Plc has revised its takeover bid for Enlabs AB by increasing its offer price from SEK 40 to SEK 53 per share.
The revised offer sees Entain propose a new €365 million deal valuation to Enlabs shareholders, with the FTSE100 firm underlining that its revised bid ‘is final and will not be increased’.
Though approved by company chairman Niklas Braathen, Entain’s original €280 million cash offer split Enlabs shareholders, as US investors – led by hedge fund Alta Fox – rejected Entain’s offer, describing the bid as ‘unsatisfactory and undervaluing’ the firm’s leading market position within the Baltic region.
Representing 10% of Enlabs shareholders, Alta Fox replied that Entain should propose a minimum offer priced at SEK 55 per share, valuing the company at €390 million.
Having extended its offer acceptance period until 18 March, Group CFO and Deputy leader Rob Wood confirmed Entain’s new SEK 53 cash offer proposal this morning.
“In a highly competitive and regulated industry, where consolidation is a key theme, Entain is able to provide the scale and platform needed to further support Enlabs’ long-term growth,” Wood detailed in Entain’s transaction statement.
“We firmly believe that Entain will be the best home for Enlabs, its employees and customers.
“Against this background, we have decided to make a final offer of SEK 53 to all shareholders, providing an opportunity to exit their investment at a very attractive valuation.”
Though not matching Alta Fox’s desired SEK 55 per share target price, Entain has maintained confidence that it will execute the deal as 51% of shareholders ‘have irrevocably agreed to accept the offer and would urge other shareholders to do the same by 18 March’.
Meanwhile, Enlabs’ independent bid committee and board have reaffirmed their previous stance that the company should pursue a combination with Entain as the best-placed outcome.