Evolution Gaming Group AB announces offer for NetEnt AB
Evolution Gaming Group AB has reportedly lodged a public offer worth some $2.12 billon that would see it fully acquire fellow Stockholm-listed online casino games developer NetEnt AB.
According to a report from the Reuters news service, the Swedish innovator revealed that the envisioned arrangement would see it pay investors around $8.56 for each share in NetEnt AB it obtained, which would represent a 43% premium based on the rival’s Tuesday closing price.
Share sweetener:
Reuters reported that Evolution Gaming Group AB also proposes giving backers of NetEnt AB 0.1306 of its own shares for each one they offload and believes the completed agreement would allow it to increase the value of its own stock and realize annual cost savings in the region of $33.82 million.
Positive response:
Evolution Gaming Group AB and NetEnt AB both develop and license a range of online casino games such as video slots to iGaming operators around the world while Reuters reported that several large investors holding some 45% of the latter’s shares are known to have already agreed to accept its offer in principle.
American leverage:
NetEnt used its own official press release (pdf) to explain that the offer price from its proposed suitor will not be increased further with investors set to be given until October 26 to decide whether to accept. The firm’s Chairman, Mathias Hedlund, detailed that the combined entity would be able to substantially increase its scale to ‘create a leading supplier of online casino products within live and slots’ and have ‘significant capabilities’ to increase its position within the nascent iGaming market of the United States.
Reportedly read a statement from Hedlund…
“Evolution Gaming Group AB’s position within live casino combined with our own position within online slots would create a company well positioned to take significant market share.”
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