MGM ends Entain speculation by withdrawing all offers

MGM Resorts International has this afternoon communicated that following ‘careful consideration’ it will not submit a revised offer for Entain Plc.

The confirmation ends weeks of speculation surrounding the proposed takeover, which saw MGM’s initial offer of 0.6 MGM shares for each Entain share, representing a value of 1,383 pence per share and a premium of 22% to the company’s share price, rejected by the British firm.

Entain’s board immediately rejected MGM’s takeover bid of $11 billion, with Chairman Barry Gibson writing to investors stating that MGM offer ‘significantly undervalued the company’s future growth prospects’. 

Bill Hornbuckle, CEO of MGM Resorts International, stated: “BetMGM, our U.S. sports betting and online gaming venture with Entain, remains a key priority for the Company as we continue to leverage our preeminent physical gaming, entertainment, and hospitality platform to expand digitally.”

“We believe that BetMGM has established itself as a top three leader in its markets and we remain committed to working with Entain to ensure its strong momentum continues as it expects to be operational in 20 states by the end of 2021.”

Speculation on MGM’s pursuit of its US wagering partner had been intensified following the announcement that Shay Segev had resigned as Group CEO of Entain Plc.  

Entain’s share price has fallen following the announcement by MGM, dropping by 16% on the London stock markets.

The firm has issued a response to MGM’s announcement, stating: “The Board of Entain plc notes the announcement made earlier today by MGM Resorts International that it does not intend to make an offer for Entain. 

“As a result of the announcement, MGMRI and its concert parties are bound by the restrictions contained in Rule 2.8 of the City Code on Takeovers and Mergers.

“Entain has a clear growth and sustainability strategy, backed by leading technology, that it is confident will deliver significant value for stakeholders. We look forward to continuing to work closely with MGMRI to drive further success in the US through the BetMGM joint venture.”