HomeGambling IndustryLeoVegas shareholders approve MGM Resorts' public tender

LeoVegas shareholders approve MGM Resorts' public tender

BUSINESS AND FINANCE02 Sep 2022
3 min. read
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The leading American hospitality and entertainment company, MGM Resorts International, announced its offer to take over LeoVegas, the leading global online gaming company, has been accepted. On Wednesday, MGM revealed that 96% of LeoVegas shareholders approved the proposed tender for the acquisition of the company.

The ambitious plan for the acquisition of LeoVegas was announced in May. Back then, MGM set a price tag for the deal of $607m. Then, in August, the company received regulatory approval for the planned takeover.

Now, the approved tender is for SEK61 per share ($5.72), which means that the total cost for the deal will be approximately $604m, slightly below the price tag announced back in May. Given the recent approval by 96% of LeoVegas shareholders, MGM revealed that next week, on or around September 7, 2022, the settlement of the shares may be completed.

According to MGM Resorts, by taking over LeoVegas, the company will be able to create a global online gaming business. The acquisition of LeoVegas' sports betting and online casino operations will create strategic opportunities for MGM Resorts which are expected to expand its global presence.

Moreover, the company will have the unique advantage to leverage superior technology capabilities and an experienced online gaming team. This in turn will enable MGM Resorts to develop innovative and scalable products and solutions.

Goldman Sachs & Co. LLC. served as MGM Resorts' financial advisor for the recent tender. On the other hand, the company collaborated with Advokatfirman Vinge KB and Weil, Gotshal & Manges LLP as legal counsel regarding the tender, while Fox Rothschild served as gaming counsel.

LeoVegas was founded back in 2011 by Robin Ramm-Ericson and Gustaf Hagman. Headquartered in Stockholm, the company has offices located in the UK, Malta and Milan. In total, LeoVegas has licenses in nine jurisdictions in Europe, primarily in the Nordics.

Gustaf Hagman, LeoVegas' Group CEO, shared his excitement in a statement by saying: "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." He acknowledged that MGM Resorts is a leading gaming company and said that LeoVegas is looking forward to the long-term success the combination will bring.

Bill Hornbuckle, MGM Resorts' CEO and president, added: "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." Additionally, he pointed out that the company is excited and looking forward to collaborating with LeoVegas' team. In conclusion, Hornbuckle said that MGM Resorts is looking to grow its online gaming presence while at the same time maximizing the potential of its omnichannel strategy.



Image credit: Pixabay.com

02 Sep 2022
3 min. read
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