Entain doubles down on £250m Enlabs bid despite investor backlash
Ladbrokes owner Entain has doubled down on its £250m cash bid for Swedish rival Enlabs despite complaints from one of the company’s largest shareholders.
In a statement today Entain said it was extending the deadline for its offer of 40 Swedish krona per share until 18 March.
The gambling group said it had filed applications with the relevant competition and regulatory authorities, but did not expect to receive approvals before its current deadline of 18 March.
It comes despite a revolt led by US hedge fund Alta Fox, which is one of Enlabs’ largest shareholders.
Alta Fox last month said the takeover offer “materially undervalues” the company, adding that it had the support of shareholders representing roughly 10 per cent of Enlab shares.
Announcing the bid, Entain chief executive Shay Segev said the tie-up was “perfectly aligned with our strategy of expanding across new regulated international markets”.
Entain’s move on Enlabs comes after the Ladbrokes owner, which also operates brands such as Coral, Bwin and Partypoker, was locked in a dramatic takeover tussle with casino group MGM.
Entain rebuffed an £8bn takeover offer from MGM, saying the deal “significantly undervalued” the company.
MGM refused to increase the price tag and withdrew its bid, but the two sides insisted they would continue their joint betting venture in the US.
Entain last month also confirmed the appointment of Jette Nygaard-Andersen as its new chief executive following the shock departure of Segev, increasing the number of female FTSE 100 bosses to six.