Entain confirms initial DraftKings offer rejection, considering new proposal

By Peter Lynch

Entain has released a further statement regarding a potential purchase from DraftKings, having initially responded to heavy media speculation about the approach.

In the second statement, the sports betting and gaming group said it has received a further proposal from DraftKings, having rejected an earlier approach from the US group.

A 2,500 pence per share proposal was rejected, but a new offer comprising 2,800 pence per Entain share consisting of 630 pence in cash and the balance payable in new DraftKings Class A common shares was received on 19 September 2021. 

This new proposal is currently being “carefully considered” by the Entain board, with the company urging its shareholders not to take action at this time.

“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,” a statement from the group read. 

“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.”

Entain noted that a further announcement will be made as and when appropriate, adding that any offer for the company will be governed by the City Code on Takeovers and Mergers.

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