Wheels in motion
MGM Resorts International is edging ever closer to a buyout of Swedish gaming giant LeoVegas. In a vote this week, 96% of LeoVegas shareholders accepted the public tender offer of SEK61 ($5.71) per share.
received regulatory approval late last month
MGM first made a play for LeoVegas in May this year, at the time offering around $607m for 100% of the firm’s shares. The total value has dropped by around $3m since then. The US casino firm said it will use existing cash to finance the deal, which received regulatory approval late last month.
Although 96% of LeoVegas shareholders have greenlit the sale, the remaining investors will have until September 14 to also accept the offer to tender. The involved parties expect the settlement to begin around September 22.
Hornbuckle reacts
MGM CEO and president Bill Hornbuckle described receiving shareholder approval as a “major milestone” for the company as it pursues its growth strategy. “We look forward to welcoming the LeoVegas team and are excited to begin working with them to grow our global digital gaming business,” the CEO affirmed.
As part of the takeover, MGM plans to onboard the Swedish brand’s management team, along with its platform and product offerings. This includes online casino and sports betting offerings outside of the US, with MGM previously stating its intention to expand its presence in the European market.
Insider trading?
While the MGM takeover bid may have come as welcome news to most shareholders, it has also resulted in an insider trading investigation in Sweden.
someone leaked MGM’s bid for the company
The Swedish Economic Crime Authority made an unannounced visit to the LeoVegas headquarters in June as part of the probe. Swedish news website DI suggested that someone leaked MGM’s bid for the company in an effort to drive up the price, although LeoVegas chairman Per Norman supposedly opposed the rumors.
No LeoVegas employees are accused of any legal wrongdoing in the investigation and the company said it is “fully assisting” authorities.