Top Stories
MGM Resorts offers to buy Sweden’s LeoVegas for $607 million
Global Banking & Finance Review®
Company
(Reuters) – MGM Resorts International on Monday offered to acquire Swedish online gaming company LeoVegas AB for about $607 million, paving the way for the U.S. casino operator to expand its presence in Europe.
(Reuters) – MGM Resorts International on Monday offered to acquire Swedish online gaming company LeoVegas AB for about $607 million, paving the way for the U.S. casino operator to expand its presence in Europe.
MGM floated a recommended public tender offer for 61 crowns ($6.20) in cash per share, which represents a 44.2% premium to LeoVegas’ last closing price of 42.32 crowns.
MGM has been looking to capitalise on the sports-betting arena through its joint venture BetMGM, which forecast earlier this year more than $1.3 billion in revenue for 2022, as the coronavirus pandemic fuelled demand for online gaming.
“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,” MGM Resorts Chief Executive Officer Bill Hornbuckle said in a statement.
LeoVegas, which has licences in eight jurisdictions primarily in the Nordics and rest of Europe, said it recommended its shareholders to accept MGM’s offer.
The acceptance period of the offer will begin during June and expire on or around August 2022.
($1 = 9.8452 Swedish crowns)
(Reporting by Tanvi Mehta in Bengaluru; Editing by Sherry Jacob-Phillips)
An acquisition is a corporate action in which one company purchases most or all of another company's shares to gain control. This can help the acquiring company expand its operations and market presence.
A public tender offer is a bid to purchase some or all of shareholders' shares at a specified price, usually at a premium over the current market price, to gain control of the company.
A joint venture is a business arrangement where two or more parties agree to pool their resources for a specific project or business activity, sharing profits, losses, and control.
In finance, a premium refers to the amount by which the price of a security exceeds its face value or intrinsic value. It often indicates the additional cost investors are willing to pay for a perceived advantage.
Explore more articles in the Top Stories category
