(Alliance News) - Entain PLC on Tuesday confirmed it has received more US takeover interest, this time from New York-listed fantasy sports and online betting firm Draftkings Inc.
The London-listed gambling firm said it received a cash and shares proposal, though did not outline any other terms of the tilt. Entain said there can be no certainty a firm offer will be made and added that Draftkings now has until October 19 to make a bid for the company, under city rules.
"A further announcement will be made as and when appropriate. Shareholders are urged to take no action at this time," Entain said.
Earlier on Tuesday, CNBC reported Draftkings made a proposal to acquire Entain.
According to CNBC, the offer from Draftkings will largely come in the form of stock. The tilt values Entain shares at 2,500 pence, implying a market capitalisation of GBP14.64 billion.
Entain shares were 19% higher at 2,281.00p each in London on Tuesday afternoon, giving it a market capitalisation of GBP13.37 billion.
CNBC said there is a cash component to the bid, though the mix is unclear.
Draftkings shares were down 7.1% at USD52.94 each in New York on Tuesday morning, valuing the company at USD21.64 billion, about GBP15.85 billion.
Draftkings went public last year, foregoing a traditional IPO and instead merging with a special purpose acquisition company.
It is not the first time Entain has received interest from the US. The company, which also owns the Coral and PartyPoker brands, rebuffed a takeover tilt from casino operator and US partner MGM Resorts International.
The proposed takeover offer was 0.6 of an MGM share for each Entain share, which, based on closing prices on December 31, represented a value of 1,383 pence per Entain share. However, the FTSE 100-listed firm told MGM Resorts that the bid "significantly undervalues the company and its prospects".
Entain partners with MGM Resorts for the BetMGM venture in the US.
Other London-listed gambling firms have attracted M&A attention from across the Atlantic. Back in September of last year, US gambling resorts operator Caesars Entertainment Inc said it reached an agreement to acquire FTSE 250-listed William Hill PLC for GBP2.9 billion.
Sports betting is being legalised in many states for the first time following a Supreme Court ruling in 2018, allowing UK bookmakers - experienced in sports betting - to tap into the lucrative market there.
By Eric Cunha; ericcunha@alliancenews.com
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Entain (ENT)