Shares in Ladbrokes owner Entain leap 24% on bid approach

Joanna Bourke
·1 min read
<p>London-listed Entain is behind betting brands such as Ladbrokes</p> (Rob Stothard/Getty Images)

London-listed Entain is behind betting brands such as Ladbrokes

(Rob Stothard/Getty Images)

Shares in the owner of the Ladbrokes and Coral betting brands, surged on Monday after it said it has received and rejected a approach from US casino giant MGM Resorts that values the business at £8.1 billion.

Entain, previously known as GVC Holdings, said it had received proposals from its joint venture partner in the US market, concerning a possible offer.

As at 9.52 am shares in Entain were up 281.26p, or more than 24%, to 1414.76p.

Under the terms of its most recent approach, MGM Resorts International, which runs a number of hotels and casinos, would offer 0.6 MGMRI shares for each Entain share.

Based on closing prices on December 31, that proposal represents a value of 1,383p per Entain share and a premium of 22% to Entain's share price as at that date.

Entain today said it has informed the suitor that “it believes that the proposal significantly undervalues the company and its prospects.”

Entain’s board has asked MGMRI to provide additional information in respect of the strategic rationale for a combination.

If a deal does sign, it would be the second major transaction in the sector in recent months, after US casino operator Caesars Entertainment agreed to buy William Hill for £2.9 billion.

Sports betting in the US has been growing rapidly.

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