Ladbrokes owner Entain said on Wednesday that DraftKings had made a £16.4bn takeover proposal for the sports betting company.
US-based DraftKings made an initial approach at 2,500p a share which was rejected, Entain said. The group subsequently upped its offer to 2,800p a share, consisting of 630p in cash and the balance in stock. The latest offer represents a 46.2% premium to Entain’s closing share price on Monday.
“The board of Entain strongly believes in the future prospects of the company underpinned by its leading market positions, world class management team and industry-leading technology,” it said.
“The company has a strong track record of growth and runway for further significant growth as set out in the capital markets day on 12th August, with the potential for its total addressable market to grow by more than three times to $160bn. This includes its leadership position in the rapidly growing North American market through its Joint Venture BetMGM.”
Entain said it will “carefully consider” the proposal and a further announcement will be made as and when appropriate.
Earlier this year, Entain rejected an all-share offer from MGM Resorts worth $11bn, arguing that it significantly undervalued the company.
