Entain raises bid for Enlabs to $438.5 million

The British company raised its cash offer to 53 crowns per share from an earlier 40 crowns per share, an 18.6% premium to Enlabs shares’ last close.

Enlabs' independent bid committee informed Entain that it will recommend Enlabs shareholders to accept the increased offer, Entain said.

As of Feb. 28, Enlabs shareholders representing 8.7% of the company's capital had committed to accept the increased offer, Entain said. Shareholders holding around 42.2% of Enlabs shares have previously undertaken to accept the offer, the company said.

Shares of Entain were up 1.7% at 1,437.5 pence in early trading.

The COVID-19 pandemic has prompted a flurry of deals in the bookmaking sector, with potential buyers seeking to capitalise on a surge in online betting from customers confined to their homes during lockdowns.

“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,” Entain’s chief financial officer and deputy CEO, Rob Wood, said in a statement.

Baltic-focussed Enlabs, which operates brands such as Optibet and NinjaCasino, has recommended shareholders accept the increased offer.

Under the leadership of former CEO Shay Segev, Entain, formerly known as GVC Holdings, planned to expand in sports betting and gaming entertainment, while exiting unregulated markets by 2023.