It is the final bid from Entain

More aligned with the opposing side

Represents EV/EBITDA 12.5x on our ’21e

Entain raises its previous bid by 32.5%
Dagens Industri and other media reported this morning that Entain has raised its bid for Enlabs to SEK 53 (40) per share, corresponding to an increase of 32.5%. The new bid equals EV/EBITDA 12.5x on our 2021 estimates and is roughly 35% above our peer group of Swedish and UK-based iGaming operators. In conjunction with the raised bid it was also communicated that 51% of the current shareholders have committed themselves to accept the new terms, up roughly 9% from the previous bid. The acceptance period ends 18 March.

The corner was looking for a bid above SEK 50
We think it highly likely that this new bid will take the deal over the finish line. Alta Fox, Topline Capital and the private investors Hans Isoz, Jimmy Jonsson and Ludwig Pettersson were reportedly looking for a bid above SEK 50 per share and deemed SEK 55 as a fair price. We believe that Entain might have done just enough to satisfy them, and that more retail investors will follow suit. Entain has stated that it will not increase the price further.

High probability that this bid will close the deal
The bid indicates a premium over our peer group of ~35%, but Enlabs is also projected to grow faster and has higher margins. The pace of consolidation in the industry has increased during the last 12 months, and size will be beneficial in the long term. If the bid goes through, Enlabs will become part of Entain (which is approx. 30x larger in terms of market cap).

research@abgsc.com (Introduce.se)

ABG Sundal Collier - Introduce.se