Get Jumps After DraftKings’ $ 22.4 Billion Offer

(Reuters) – UK group Entain shares soared on the stock market following the announcement of a $ 22.4 billion (€ 19.10 billion) offering from US gambling and betting group DraftKings.

On the London Stock Exchange, the Entain security, which has practically doubled in value since the beginning of the year, rose 6.3% to 2,400.48 pence around 8:00 GMT, marking one of the best performances in the FTSE index. .

DraftKings is offering 2,800 pence a share to buy Entain, a 46.2% premium over Monday’s closing price.

In January, the British group rejected a $ 11 billion takeover offer from US casino operator MGM Resorts, considering it undervalued.

The online sports betting market has been booming in the United States since the lifting of the ban decided in 2018 by the Supreme Court. This has led to a wave of transatlantic partnerships and consolidation, such as the purchase this year of Britain’s William Hill by American Caesars Entertainment for 2.9 billion pounds.

MGM and Entain, formerly known as GVC, have owned a joint venture since 2018 that operates online sports betting in the United States.

JPMorgan analysts believe that DraftKings’ bid for Entain should be attractive enough for MGM to give up its desire to take control of its BetMGM joint venture.

(Muvija M report in Bangalore; French version Claude Chendjou, edited by Jean-Michel Bélot)

Back to top button