The previously announced upcoming merger between Kings Entertainment and Sports Venture Holdings (SVH), the holding company of Canadian sportsbook Bet99, is seemingly on the verge of collapse.
Addressing the situation last week, Kings contends that, despite ‘months of consistent effort’ SVH is ‘refusing to complete’ the agreed-upon business combination announced in May last year.
Under the terms of the agreement, CEO of Bet99 Jared Beber was expected to become the CEO of the merged company, with current Kings leader Steve Budin lined up for an advisory role.
The move received shareholder approval in October and three extension agreements were made between Kings and SVH to complete the merger, while the outside date to close the Business Combination Agreement had been extended to Mar. 17.
However, the planned merger now looks increasingly unlikely following the statement provided by Kings, which added that it ‘is considering all options with respect to the enforcement of the Business Combination Agreement, the loan and its other rights’.
Kings was set to significantly diversify its business operations via the merger, notably solidifying a standing in sports betting and igaming.
This widening of its product range would be accompanied by and reflected in a group-wide rebranding which would see the company change its operating identity from Kings Entertainment to Interactive Entertainment Group.
SVH has not yet issued a statement on the matter.