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Entain has, via its wholly-owned Bwin Holdings subsidiary, increased the price of its offer to purchase Baltics online gambling group Enlabs, after first making acquisitive moves at the turn of the year.

In January the independent bid committee of Enlabs unanimously resolved to recommend the company’s shareholders to accept the offer of SEK 40 per share, valuing the group at SEK 2.8bn, equivalent to approximately £250m, however a collection of interested parties, representing a ten per cent holding, suggested that the proposal “materially undervalues the company”.

The global sports betting and gaming entertainment firm has now, after previously extended its acceptance period, returned with an increased proposition of SEK 53 per share, which values Enlabs at around SEK 3.7bn, the equivalent to approximately £316m.

The independent bid committee of Enlabs has informed Entain that it will recommend that shareholders accept the offer, with a formal statement to be forthcoming no later than one week prior to the expiry of the acceptance period.

The company says that a selection of those shareholders who had previously voiced objection to the takeover have now “provided irrevocable undertakings to Entain to accept the Increased offer,” with those conditional only on it being declared unconditional on or before May 17, 2021.

Individuals holding a little under 51 per cent of Enlabs shares have entered into commitment to accept the revised offer, which the firm says is “more attractive” to shareholders. The acceptance period of the offer initially ran until February 18, 2021, but was extended last month until March 18, 2021.

Rob Wood, CFO and deputy CEO of Entain, explained: “As a world leader in sports betting and gaming entertainment, Entain’s ambition is to revolutionise betting and gaming to create the most exciting and trusted entertainment for every customer. 

“In a highly competitive and regulated industry, where consolidation is a key theme, Entain is able to provide the scale and platform needed to further support Enlabs’ long-term growth, and we firmly believe that Entain will be the best home for Enlabs, its employees and customers. 

“Against this background, we have decided to make a final offer of SEK 53 to all shareholders, providing an opportunity to exit their investment at a very attractive valuation. We are pleased that shareholders with around 51 per cent have now irrevocably agreed to accept the offer and would urge other shareholders to do the same by 18 March.”