US Casino powerhouse MGM Resorts International (NYSE: MGM) has made an offer of approximately $8.1 billion to acquire Ladbrokes and Bwin owner Entain (LON: ENT).
Shares of Entain are up 24.70%, priced at 1413.5p following the news.
Under the terms of the proposal, MGM would offer 0.6 MGMRI shares for each Entain share, and based on the closing price of December 31st, the bid values each share at 1,383p, representing a premium of 22%.
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The Wall Street Journal first reported the offer, and it was later confirmed by Entain in a statement, saying that “the proposal significantly undervalues the company and its prospects.”
The move represents the latest US casino operator eyeing UK gambling companies to capitalise on the sports betting market since its deregulation in the US.
In September, Caesars Entertainment agreed on a deal to acquire UK-based William Hill.
Entertain owns a plethora of gambling brands, including Coral, Eurobet, Gala, and Foxy Bingo.
While betting shops have been impacted by the coronavirus pandemic, online gambling companies have seen a boost which has caught the attention of companies such as MGM and Caesars as they try to readjust their businesses to suit a changing environment.