Entain plc has extended today’s deadline for potential suitor DraftKings to confirm its intentions or otherwise to acquire the business.
Under the terms of the previously announced proposal, DraftKings said it would offer 2,800 pence per Entain share consisting of 630 pence in cash and the balance payable in new DraftKings Class A common shares.
The DFS and sports betting operator also proposed that the exchange ratio which would deliver the share element of the 2,800 pence per Entain share would be fixed immediately prior to the first agreed public announcement.
DraftKings was required, by no later than 5pm today, to either announce a firm intention to make an offer for Entain or announce that it does not intend to make an offer. However, with discussions between the parties still ongoing, Entain has secured an extension to that deadline which now falls at 5pm on November 16, 2021.
This deadline can be further extended by the Board of Entain, with the consent of the Takeover Panel.
The board of Entain said in a statement that it has carefully considered the proposal received from DraftKings on September 19 2021, along with feedback from Entain shareholders. “The board has been in discussions with DraftKings in order to explore the merits and feasibility of a potential transaction reserving its position on the appropriateness of the value of the proposal,” it noted.
Moreover, it has set out a number of matters to be satisfactorily resolved which, it believes, are fundamental to the structure and value of the proposal. They include, but are not limited to:
- Total value creation for Entain shareholders, including share of potential synergies
- Terms for any proposed technology supply agreement to BetMGM and MGM
- Governance rights and value protection for the combined entity’s stake in BetMGM
- Governance and management composition of the pro forma DraftKings / Entain entity
- Deliverability of the potential transaction, including antitrust and regulatory clearances
The statement added: “The board strongly believes in the future prospects of Entain, underpinned by its leading market positions, world class management team and industry-leading proprietary technology. Entain has an outstanding track record of growth having delivered 23 consecutive quarters of double digit online NGR growth, and a three-year CAGR of 19% across 2021.
“Entain’s management remains focused on executing its growth and sustainability strategy and on delivering the opportunities laid out in Entain’s capital markets event on 12 August to treble its total addressable market to c.$160bn.
“As a result the board is confident in Entain’s ability to continue to deliver material value for its shareholders going forward. There can be no certainty that a firm offer will be made nor as to the terms of any such offer. A further announcement will be made in due course.”