MGM Resorts International announced that it has commenced a recommended public tender offer for 100% of the shares of LeoVegas AB at a price of SEK 61.00 in cash per share, equivalent to a total tender value of approximately US$607 million
"Our vision is to be the world's premier gaming entertainment company, and this strategic opportunity with LeoVegas will allow us to continue to grow our reach throughout the world," said MGM Resorts' CEO & President Bill Hornbuckle.
"We have achieved remarkable success with BetMGM in the U.S., and with the acquisition of LeoVegas in Europe we will expand our online gaming presence globally. We believe that this offer creates a compelling opportunity that allows the combined teams of MGM Resorts and LeoVegas to accelerate our global digital gaming growth and fully realize the potential of our omnichannel strategy. We look forward to being able to welcome the LeoVegas team to our MGM Resorts family," Hornbuckle added.
Founded in 2011 by Gustaf Hagman and Robin Ramm-Ericson, LeoVegas is a leading global online gaming company with licenses in eight jurisdictions primarily in the Nordics and rest of Europe. LeoVegas generated EUR 393 million in revenue and EUR 48 million in Adjusted EBITDA during the last twelve months ended March 31, 2022. The business is headquartered in Stockholm with offices in Malta, United Kingdom and Milan.
MGM Resorts believes the acquisition of LeoVegas will provide a unique opportunity for the company to create a scaled global online gaming business.
The acceptance period of the offer is expected to commence on or around June 2022 and expire on or around August 2022. An offer document regarding the offer is expected to be made public shortly before the commencement of the acceptance period. Assuming that the offer is declared unconditional no later than around end of August 2022, settlement is expected to begin around early September 2022.
The offer is subject to certain regulatory approvals, the receipt of valid tenders of more than 90% of LeoVegas' shares and customary closing conditions. It is expected to be completed during the second half of fiscal year 2022.
“As the largest shareholder, I support the offer MGM Resorts announced today. I see huge potential in what LeoVegas and MGM could achieve together. MGM Resorts have been working on creating the best offline casino experience for a long time, and we’ve done the same for the online experience. Merging the two is a very exciting prospect. MGM Resorts has an ambitious agenda and financial muscles that would enable LeoVegas to grow quicker. Together we can make LeoVegas the largest igaming brand in the world!” said CEO and Co-founder of LeoVegas Gustaf Hagman.
“Given these circumstances, I think MGM is a perfect partner – and that’s why I am supporting this offer,” Hagman concluded.
Source: GMB
