LOVEJILI 21.LOVEJILI link,Lovejili philippines

MGM Closes in on LeoVegas Takeover as 96% Of Shareholders Agree to Sell

  • Almost all of LeoVegas’ shareholders have accepted the tender offer of SEK($5.71) per share
  • That values the company at around $604m, a drop from the amount offered by MGM in May
  • MGM CEO Hornbuckle described the approval as a “major milestone” as it looks to grow
  • The deal has sparked an insider trading investigation in Sweden with which LeoVegas is assisting
MGM sign
The majority of LeoVegas shareholders have agreed to sell to MGM in a deal worth around $604m. [Image: Shutterstock.com]

Wheels in motion

MGM Resorts International is edging ever closer to a buyout of Swedish gaming giant LeoVegas. In a vote this week, 96% of LeoVegas shareholders accepted the public tender offer of SEK61 ($5.71) per share.

received regulatory approval late last month

MGM first made a play for LeoVegas in May this year, at the time offering around $607m for 100% of the firm’s shares. The total value has dropped by around $3m since then. The US casino firm said it will use existing cash to finance the deal, which received regulatory approval late last month.

Although 96% of LeoVegas shareholders have greenlit the sale, the remaining investors will have until September 14 to also accept the offer to tender. The involved parties expect the settlement to begin around September 22.

Hornbuckle reacts

MGM CEO and president Bill Hornbuckle described receiving shareholder approval as a “major milestone” for the company as it pursues its growth strategy. “We look forward to welcoming the LeoVegas team and are excited to begin working with them to grow our global digital gaming business,” the CEO affirmed.

As part of the takeover, MGM plans to onboard the Swedish brand’s management team, along with its platform and product offerings. This includes online casino and sports betting offerings outside of the US, with MGM previously stating its intention to expand its presence in the European market.

LeoVegas reported revenue of €394m ($395.4m) for the financial year ending June 30, 2022. According to MGM, LeoVegas’ compounded annual growth rate from 2017 to 2021 was 16%.

Insider trading?

While the MGM takeover bid may have come as welcome news to most shareholders, it has also resulted in an insider trading investigation in Sweden.

someone leaked MGM’s bid for the company

The Swedish Economic Crime Authority made an unannounced visit to the LeoVegas headquarters in June as part of the probe. Swedish news website DI suggested that someone leaked MGM’s bid for the company in an effort to drive up the price, although LeoVegas chairman Per Norman supposedly opposed the rumors.

No LeoVegas employees are accused of any legal wrongdoing in the investigation and the company said it is “fully assisting” authorities.

Leave a Reply

Your email address will not be published. Required fields are marked *