MGM Resorts International has initiated a takeover bid for 100% of LeoVegas shares worth$ 607 million.

The bid was $ 3 billion USD (NZD)

MGM Resorts offers a millionaire bid of $607 million dollars, which corresponds to 3 billion Dollar (NZD), for the company that operates online games - Leovegas.

LeoVegas is a solid company that is headquartered in Stockholm and has licenses in eight jurisdictions, most of them in the Nordic countries and the rest of Europe. But it has been highlighted by the successful relaunch of the sports betting brand Expekt .

LeoVegas has been generating very high revenues with a total of 48 million euros in adjusted EBITDA during the last twelve months. The growth has been attributed to the Nordic markets which generated 51% of the group'S NGR.

Leovegas shares rose more than 50% in a week after the offer was announced.

Will the offer be accepted?

Leovegas said the company has received a lot of interest, but that MGM's offer was superior from the point of view of shareholders and has been quite satisfied with the proposal.

The offer is trading in Swedish kronor, and was offered SEK 61 ($6.16/$30.64) in cash per share, generating a premium of 44.2% over LeoVegas ' last closing price of 42.32%.

They are awaiting approval from 90% of shareholders, but the CEO and co-founder of LeoVegas Gustaf Hagman , he has been very enthusiastic and publicly put himself in favor of the merger of the two companies.

When is the deal happening?

The proposal was made in early May 2022 and the acquisition period is expected to be around July until August 2022.

Who is MGM-learn more about the bidder

MGM Resort is a hospitality and entertainment company that operates destination resorts in Las Vegas. And it has as a successful partnership BetMGM in the USA and Entain which is a gambling operator from the UK.

Bet MGM is the second largest online sports bookmaker of NFL football and NBA basketball. And it has been raising its 2022 revenue forecast to more than $ 1.3 billion from $ 1 billion.

LeoVegas has already shown its full potential in the European market, drawing the attention of MGM Resort which intends to expand its online gaming presence globally.

MGM quotes

The CEO and president of MGM Resorts, Bill Hornbuckle , say:

Our vision is to be the world's leading gaming entertainment company, and this strategic opportunity with LeoVegas will allow us to continue to grow our reach around the world.

We look forward to welcoming the LeoVegas team into our MGM Resorts family.

We have achieved remarkable success with BetMGM in the US and with the acquisition of LeoVegas in Europe we will expand our online gaming presence globally.

Bill Hornbuckle, CEO of MGM

Leovegas quotes

The CEO and co-founder of LeoVegas, Gustaf Hagman , ​​ pronounced on LinkedIn and said:

As the largest shareholder, I support the offer MGM Resorts announced today. I see huge potential in what LeoVegas and MGM can achieve together. MGM Resorts has been working to create the best offline casino experience for a long time, and we've done the same for the online experience. The merger of the two is a very exciting prospect.

MGM Resorts has ambitious plans and financial capability that would allow LeoVegas to grow faster. Together we can make LeoVegas the biggest igaming brand in the world! Given these circumstances, I think MGM is a perfect partner – and that's why I'm supporting this offer.

LeoVegas CEO and co-founder Gustaf Hagman

What happens to Leovegas New Zealand now?

LeoVegas, already well established in all international markets, has as a highlight a complete platform, which encompasses sports betting, casino games and Casino lives.

It has conquered the New Zealand audience for being a platform almost aimed at players who like to have access through mobile or tablet. Awarded numerous times, LeoVegas has been one of the best options on the market.

For players New Zealand to LeoVegas it informs that there will be no change in the platform and all users already registered will have access normally.