Earlier this month, Ladbrokes and Coral operator Entain, previously known as GVC Holdings, made an offer for Enlabs worth SEK 2.8bn ($336.3m), valuing each share in the operator at SEK 40.

The offer, which was recommended by the board of Enlabs, also saw shareholders holding 42% of the total number of shares in the Baltics established operator undertaking to accept the bid.

But now, shareholder Alta Fox Capital Management, which owns 2,332,625 shares representing 3% of the company, stated it doesn’t plan to tender any shares at the current offering.

In support from Topline Capital, which own shares equating to 2%, and private investors, Alta Fox said the offer “materially undervalues the company, represents a negligible premium of 1.1% to the pre-trading price”, and questioned the reasons behind Enlabs’ chairman Niklas Braathen accepting the offer.

That means the acquisition, which Alta Fox adds is a “bad deal for minority shareholders”, is opposed by those holding an 11% stake in Enlabs, and Alta Fox also said it has retained legal counsel to protect its interests in the matter.

It also believes an alternative offer of SEK 55 per Enlabs share would representant a fairer price and if this price isn’t met, the operator should remain a standalone entity.

Alta Fox said: “Alta Fox confidently believes we have the support to block a squeeze-out of minority shareholders, legal counsel to ensure their fair treatment under Swedish law, and the determination to obtain a fair price that is reflective of Enlabs' standalone growth prospects.”