* Entain offers to buy Enlabs in deal valued at 2.8 bln SEK
* Enlabs board backs deal expected to close in first quarter
* Deal days after Entain rejects $11 bln MGM takeover
approach
(Adds deal details, shares, context, background)
By Yadarisa Shabong
Jan 7 (Reuters) - Ladbrokes owner Entain said on
Thursday it has offered to buy Swedish-based sports betting firm
Enlabs AB for about $343 million, days after it
rejected an $11 billion takeover approach from U.S.-based MGM
Resorts.
The Enlabs offer has been backed by the Swedish company's
board and is expected to close in the first quarter of 2021, the
London-listed company said.
The COVID-19 pandemic has driven deal-making across many
sectors. In bookmaking, potential buyers aim to capitalise on a
surge in online betting by customers kept at home by lockdowns.
Under the leadership of Shay Segev, Entain, formerly known
as GVC Holdings, plans to expand in sports betting and gaming
entertainment, while exiting unregulated markets by 2023.
Entain, which earlier this week said the approach from MGM
Resorts significantly undervalued its business, is offering 40
SEK for each Enlabs share.
Shares in Baltic-focussed Enlabs, which operates brands such
as Optibet and NinjaCasino in the sports, casino and internet
gaming market, were up 1.8% at 40.25 SEK in early trade.
Entain's stock was marginally higher.
"The acquisition of Enlabs is perfectly aligned with our
strategy of expanding across new regulated international
markets," said Segev.
The Enlabs deal would be financed from its current cash
reserves and is expected to add to Entain's earnings from the
first full year of ownership.
Betting companies in the United States, widely seen as the
next growth market after the lifting of a ban on sports betting
in 2018, have been swooping to partner with their transatlantic
counterparts to tap into European expertise.
MGM and Entain have had a joint venture since 2018, when
they set up an online betting platform in the United States.
Entain also on Thursday raised its annual core earnings
forecast to between 825 million pounds and 845 million pounds,
an increase of about 7%.
Las Vegas-based casino operator Caesars Entertainment
in September agreed to snap up London-based gambling
group William Hill for 2.9 billion pounds($3.95
billion).
($1 = 8.1732 Swedish crowns)
($1 = 0.7348 pounds)
(Reporting by Yadarisa Shabong in Bengaluru; Editing by Sriraj
Kalluvila and Barbara Lewis)
