The London Stock Exchange’s Panel on Takeovers and Mergers has granted Entain’s request to extend the deadline by which prospective suitor DraftKings must submit a firm bid for Entain following a £16.40bn (€19.23/$22.40bn) takeover proposal last month.
With the deadline on DraftKings’ 2,800-pence-per Entain-share takeover proposal expiring today (19 October), the Takeover Panel has now given the US giant until 16 November to make a follow up proposal. This so-called “put up or shut up” deadline can be extended further by Entain’s board, with the panel’s consent.
Entain announced in September that DraftKings had put forward its 2,800 pence per share bid, consisting of 630 pence in cash, and the balance payable in new DraftKings Class A common shares. This revised offer followed a 2,500 per share bid – also comprising cash and stock – being rejected.
Since then the Ladbrokes and bwin operator’s board has been in discussions with DraftKings, and believes a number of matters need to be resolved before it takes a position on the offer.
It has set out five key elements, saying more clarity is needed on the value creation for Entain shareholders, including their share of potential synergies, and the terms of any technology supply agreement to BetMGM and MGM Resorts.
The land-based giant – which had a bid for Entain rejected in January 2021– has already said it intends to fight for control of the 50/50 BetMGM joint venture. As such, Entain’s board said it wants more from DraftKings on the governance rights and value protection for the BetMGM stake.
It is also seeking further clarity on the governance of management structure for the combined entity, and an outline of how the transaction will clear anti-trust and regulatory hurdles.