Entain Announces Cash Offer for Acquisiton of Enlabs AB
The company changed its name at end of last year from GVC Holding plc to Entain plc. With the new name came the fundamental change within the company, that the rebranding promised. Part of its fast transformation is the aggressive expansion in the US, as well as in the Baltic region.
Enlabs is a stable leader on the Latvian market. It operates in the Baltics and the company is currently one of the largest operators in Lithuania. It has long been focused on growth markets. The Baltic region is one of them. It fact, it is one of the most attractive and fast-growing gaming regions. Since Entain does not operate on this market, the company believes that the acquisition of Enlabs would help with its expansion.
Acceptance Period Expires in February
The CEO of Entain plc, Shay Segev commented on the acquisition calling it a perfect alignment with the company’s ambition to expand across new international markets. He expresses his excitement about the growing opportunities in front of Entain, a company, which is already a rapidly growing business.
The acquisition will benefit both companies. Entain will expand its influence across the Baltics and Enlabs will have the opportunity to grow both within its existing markets, as well as successfully attain other ones, such as Belarus and Ukraine.
Entain’s long-term plans do not include any material changes to Enlabs’ organization, management and employees. Their terms of employment, as well as the location of operation will remain the same.
Entain plans to retain the services of current chairman of Enlabs board, Niklas Braathen to help develop its operations in the Baltic, as well as the Nordic region and Eastern Europe. On this, Braathen commented, that Enlabs has already accomplished a lot as an independent company but the board could see that Entain was a good choice of a partner, who will provide an excellent home for the company.
The offer values Enlabs at approximately SEK 2.80 billion. If the company accepts the offer, the purchaser will own 90% of its shares. The acceptance period expires around February 18.
Sources: “Entain announces a recommended cash offer to the shareholders of Enlabs AB”, PRNewswire, January 7, 2021.
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