Entain plc (LON:ENT) has noted the recent press speculation. The Board of Entain has confirmed that it has received proposals from MGM Resorts International, its partner in the US market, concerning a possible offer for Entain.
Under the terms of its most recent proposal, MGMRI would offer 0.6 MGMRI shares for each Entain share. Based on closing prices on 31 December 2020, being the last trading day prior to this announcement, MGMRI’s proposal represents a value of 1,383 pence per Entain share and a premium of 22% to Entain’s share price. Under the terms of the proposal, Entain shareholders would own approximately 41.5% of the enlarged MGMRI. MGMRI has indicated that a limited partial cash alternative would also be made available to Entain shareholders.
Entain has informed MGMRI that it believes that the proposal significantly undervalues the Company and its prospects. The Board has also asked MGMRI to provide additional information in respect of the strategic rationale for a combination of the two companies.
A further announcement will be made as appropriate. In the meantime, Entain shareholders are encouraged to take no action.
There can be no certainty that any offer will be made for the Company, nor as to the terms on which any such offer might be made.
Any offer for Entain is governed by the City Code on Takeovers and Mergers. Under Rule 2.6(a) of the Code, MGMRI must by not later than 5.00 p.m. on 1 February 2021 either announce a firm intention to make an offer for Entain in accordance with Rule 2.7 of the Code or announce that it does not intend to make an offer, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies. This deadline will only be extended with the consent of the Panel in accordance with Rule 2.6(c) of the Code.
This announcement has been made by Entain without the agreement or approval of MGMRI.
