That price represents a 44% premium on LeoVegas’ closing stock price on 29 April, the last trading day before the announcement was made on 2 May.
Following the announcement, LeoVegas’ board of directors unanimously recommended that shareholders accept the bid. That included the business’ largest shareholder and CEO, Gustaf Hagman, who said at the time: “I see huge potential in what LeoVegas and MGM could achieve together.”
“MGM Resorts have been working on creating the best offline casino experience for a long time, and we’ve done the same for the online experience. Merging the two is a very exciting prospect,” he added.
While MGM has received the necessary regulatory approvals to move ahead with the deal, all other conditions specified in the offer document still apply.
The acceptance period for the offer began in early June and will expire next week on 30 August.
Settlement for shares tendered in the offer is expected to take place as soon as MGM can confirm that all other conditions for the offer are fulfilled.
Provided such an announcement is made no later than 31 August, settlement is expected to be initiated on or around 7 September, MGM said.
MGM’s online offering, BetMGM, continues to take the lead in the US online casino market in 2022, with gross gaming revenue share in its operating markets of almost 30%.
That figure puts the brand ahead of its two closest iGaming competitors, FanDuel and DraftKings, by close to 50%, and well clear of Caesars which takes up the fourth position.
While LeoVegas has limited exposure in the US, the transaction could still pay dividends for the buyer. That’s particularly in terms of expanding awareness of the venerable MGM brand in Europe.
In LeoVegas, MGM adds not only a familiar name to the European online gaming scene, but a profitable one as well – a rarity in the US iGaming industry. For the year ending March 31, 2022, LeoVegas generated revenue of US$414.24 million and earnings before interest, taxes, depreciation and amortization (EBITDA) of US$50.59 million, based on current exchange rates.
With LeoVegas, MGM gains enviable positioning in Europe, where the target has eight gaming licenses in the Nordic region and across the continent. LeoVegas is also a well-known sportsbook operator in Europe, indicating a purchase by MGM could fit in well with the suitor’s BetMGM business.
Source: GMB
