UK-based Entain PLC (OTC:GMVHY) (formerly GVC Holdings) recently received a takeover offer of $11.06B USD from US Casino group MGM Resorts International which would have left shareholders owning approximately 41.5% of the company.
MGM and Entain have been partners in a $450m 50/50 sports-betting joint venture in the US since 2018, with each company bound to the deal through exclusivity clauses.
Entain rebuffed the offer on the basis that it felt the offer “significantly undervalued” the company, but giving MGM until 1st February to put forward a revised offer proposal.
MGM has now withdrawn its offer and indicted it will not be making another offer, despite the initial offer being backed by MGM’s largest shareholder (InterActive Corp) with offere to support the deal to the tune of $1B.
Earlier this month, Entain CEO Shay Segev announced his resignation, and is working his notice period before joining global sports media platform DAZN Sports. Entain board-member and non-executive director Jette Nygaard-Andersen is in talks to replace Segev.
Under the United Kingdom’s City Code on Takeovers and Mergers, MGM Resorts International cannot make another offer for Entain for at least six months.
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