The American Casino Giant's tenders of 61 sec per share represents a price of 44% over Friday's closing course at Nasdaq Stockholm.
MGM Resorts has submitted a public tender offer on all Leoves '' Shares at a price of 61 sec per share (£ 4.94).
The bid, which is 44% above the Stockholm-listed LeoVegas's closing course of 42.32 sec on Friday and will be financed with existing cash and corresponds to a total value of around £ 607 million (£ 483 million).
The Board recommends shareholders to accept the offer
LeoVegas's board has unanimously recommended shareholders to accept the offer.
Acceptance The period for the offer is expected to begin June 3, 2022 and expires August 30, 2022.
The news of the Las Vegas-based casino group's tenders for the iGaming operator sent shares in LeoVegas up with 45% to almost 60 sec.
Mgm resorts sees a unique opportunity
MGM Resorts said the agreement would provide "a unique opportunity to create a scaled global online gaming business".
The casino operator also pointed to LeoVegas' "strong customer base outside the United States", its experienced team and scalable technological platform, as well as its "commitment to profitable growth".
From 2017 to 2021, the annual composite growth rate for LeoVegas revenues was 16%.
In the last 12 months until 31 March 2022, the company generated revenues of $ 393m (£ 330m) and adjusted operating profit after tax (EBITDA) of $ 48m.
Bill Hornbuckle, MGM Resort's CEO and President, said: "Our vision is to be the world's foremost gaming entertainment company, and this strategic opportunity with LeoVegas will allow us to continue to increase our reach all over the world."
"We have achieved remarkable success with BETMGM in the United States, and with the acquisition of LeoVegas in Europe we will expand our online game presence globally."
He added: "We believe that this offer creates a compelling opportunity that allows the combined teams to MGM Resorts and LeoVegas accelerating our global digital gaming growth and fully realizing the potential of our Omnichannel Strategy."
An acquisition will give MGM resorts a footprint online
Buying LeoVegas will diversify MGM Resorts's footprint online, especially outside the United States. Around half of LeoVegas's revenues come from the Nordic countries, while LeoVegas and Royal Panda are live in Ontario's recently regulated market (the province accounted for 13% of the Group's revenues in January).
The company headquartered in Stockholm can also boast its own casino platform, called Rhino, as well as a complementary sportsbook (12% of Q1 2022 revenue compared to 72% for "Classic Casino" and 16% for Live Casino) run by Kambi.
LeoVegas recently marked its 10th anniversary
Founded in 2011 by Gustaf Hagman and Robin Ramm-Ericson, LeoVegas recently marked their 10th anniversary, first out in Sweden, in January 2012.
The company was listed in March 2016 at Nasdaq First North Premier and today consists of almost a dozen brands including Gogogocasino, Betuk.com, Pink Casino, Royal panda, 21.Co.uk and Expekt.
It will be exciting to follow the continuation.
Source: EGR: Global