The board of Entain Plc has published a further media statement outlining the financial terms of DraftKings approach to acquire its business.
The statement confirmed a first offer made by DraftKings at £25 per share, comprised of a combination of group shares and cash – valuing the business at $20 billion (£14.6 bn)
Entain governance rejected DraftKings initial terms that would be revised to a new offer of £28 per Entain share.
The revised offer is comprised of a £6.30 cash settlement and the remainder of the balance payable in new DraftKings Class-A common shares.
Valuing its new approach at $22 billion (£16.5 bn), DraftKings outlined that its revised offer represented a 46.2% premium on Entain’s closing share price on 20 September 2021.
The £28 per share offer, is being considered by Entain governance to be put forward to shareholders, who have been urged to take no action as the offer is evaluated.
DraftKings approach triggered a day of frantic trading across industry stocks, that saw Entain LSE share price jump 20% to £22.60, as DraftKings Nasdaq price dived 5% to $55.77.
Following developments, city analysts praised the foresight of Entain Chairman, Barry Gibson who at the start of the year rejected an $11 billion approach by US wagering partner MGM Resorts as ‘significantly undervaluing Entain’s business and prospects’.
Eyes have returned to MGM and how it will formalise its deal to lure Entain investors that have been tempted by DraftKings terms that are 80% better than its original approach.