Entain Plc has released all documents related to a proposed plan to raise £600m in new capital, which will primarily be used to acquire STS Group, Poland’s largest bookmaker.
The purchase will be carried out by Entain CEE in partnership with private equity fund EMMA Capital, which will fund 25% of the offer.
Entain CEE offered a valuation for the acquisition of the entire STS stake at a purchase price of PLN 24.80 per share, which represents a significant premium of 35% compared to the weighted average price over the past 6 months. The offer also includes a premium of 28% to the weighted average price for the last 3 months and a premium of 20% to the current market price as of June 12, 2023. This award values the STS Group at around £750 million.
The promoters of the deal have made it clear that the acquisition of STS will provide Entain with a direct opportunity to become the leading sports betting platform in Central and Eastern Europe (CEE) and take a leading position in the region’s largest market.
Entain CEE was formed last summer after the acquisition of Croatian company SuperSport for £690m. Entain owns a 75% controlling interest in this organization, which was established in partnership with EMMA Capital.
Mateusz Juroszek will continue to lead the company and join the Board of Directors of Entain CEE, using his experience in driving the growth of the Polish gaming market.
«We could not have found a better partner to help us take STS into the next phase of its growth, and it is clear that Entain shares our ambition and vision for its future. I look forward to continuing to lead and grow STS, and to working in close collaboration with the Entain CEE team.» — read a statement by Juroszek
Jette Nygaard-Anderson, Entain’s CEO, added: «We are delighted to be acquiring the leading sports-betting operator in Poland, which is a hugely exciting and fast-growing market. STS is an exceptional business with a great brand, a compelling omnichannel offering, and an outstanding CEO and management team.»
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