(C) Reuters. FILE PHOTO: The Circus Circus hotel and casino is seen along the Las Vegas strip
(Reuters) -Ladbrokes owner Entain Plc said on Monday an $11 billion bid proposal from U.S. casino operator MGM Resorts (NYSE:MGM) significantly undervalued its business in the latest transatlantic move in a fast consolidating sector.
The proposed offer of 1,383 pence per Entain share implies a total deal value of 8.09 billion pounds ($11.08 billion), according to a Reuters calculation. It represents a premium of 22% to Entain’s last close.
The United States is seen as the next big growth market for sports betting, spawning a series of transatlantic partnerships tapping into European expertise such as Britain’s William Hill being bought by Caesars (NASDAQ:CZR) Entertainment in a 2.9 billion pound deal announced in September.
Entain said it received multiple proposals from MGM, with the most recent one being MGM’s offer of 0.6 of its shares for each Entain share.
The British company, previously known as GVC, said its shareholders would own about 41.5% of the enlarged MGM.
MGM has indicated that a limited partial cash alternative would also be made available to Entain shareholders, the company said. ($1 = 0.7301 pounds)
Ladbrokes owner Entain receives $11 billion takeover offer from MGM
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