A public tender offer of SEK 61 (£4.92) in cash per share has been accepted by 96 per cent of LeoVegas shareholders as MGM Resorts International looks to finalise a purchase that “represents a major milestone”.
Settlement of the shares is expected to be initiated around September 7, 2022, and represents a total value of approximately $604m (£520.98m), which is a slight drop from the $607m expressed when the deal was first disclosed in early May.
To allow for those shareholders who have not yet accepted the offer to tender their shares to MGM, the acceptance period is extended until September 14, 2022 at 17:00 CEST. Settlement is expected to begin around 22 September 2022.
MGM has long since hailed the prospective purchase as “a unique opportunity for the company to create a scaled global online gaming business,” with the group also previously detailing a plan to execute on an expanded presence in Europe.
It is anticipated that LeoVegas’ online casino and sports betting foothold outside of the US will swell MGM’s presence in an array of global markets further still.
Furthermore, the operator also noted that LeoVegas’ “experienced online gaming management team and superior technology capabilities” will be a key asset in creating a scaled online gaming business.
“The completion of this transaction represents a major milestone for MGM Resorts as we continue to pursue our strategy of growing our online gaming footprint worldwide,” commented Bill Hornbuckle, MGM Resorts’ CEO & President.
“We look forward to welcoming the LeoVegas team and are excited to begin working with them to grow our global digital gaming business and maximise the full potential of our omnichannel strategy.”
LeoVegas, which boasts licences in nine jurisdictions, generated revenue of €394m (£340.72m) and adjusted EBITDA of €46m (£39.77m) during the year ending June 30,2022.
“Joining forces with MGM Resorts is a major win for LeoVegas and we’re excited to begin working with our new teammates to build upon the work we’ve done over the last 10 years,” stated Gustaf Hagman, LeoVegas Group CEO.
“MGM Resorts is a premier gaming entertainment company and we look forward to leveraging their expertise to further our long-term strategic goals.”