Entain Takeover of Polish Gaming Operator STS Group Approved by Shareholders
Posted on: August 22, 2023, 03:16h.
Last updated on: August 22, 2023, 03:16h.
gaming In a decisive move that could reshape the landscape of global sports betting and gaming giant Entain’s future, shareholders of STS Holding have overwhelmingly approved the acquisition of the company. The purchase was expected, as the family that controls the majority of the company had already agreed to support the deal.
The acquisition bid, which had been in the works for just a few months, was met with anticipation and scrutiny from industry experts and investors alike. STS Holdings is in the process of being removed from the Warsaw Stock Exchange as part of the deal worth a total consideration of about $959.5 million.
Entain, already a powerhouse in the global gaming and entertainment sector, saw the acquisition as an opportunity to further expand its reach and enhance its offerings. It’s part of the company’s planned growth initiative involving its Entain CEE (Central and Eastern Europe) arm.
Entain Takes Over Poland
The approval of the acquisition required a majority vote from STS Holdings’ shareholders, and the response was resoundingly positive. An overwhelming percentage of shareholders – 99.3% – responded favorably to the deal.
The Juroszek family, including STS CEO Mateusz Juroszek and his father, Zbigniew Juroszek, owns 70% of the company. They had previously signed an agreement to move forward with the sale, and the younger Juroszek will stay on as CEO. He will also become an Entain CEE board member.
As the acquisition process enters its final stages, both companies are working diligently to ensure a smooth transition. Regulatory approvals and other formalities are wrapping up, paving the way for the deal’s closure on August 24, 2023.
Entain, which recently stated that it’s likely to receive a massive fine in the UK in response to bribery charges, is paying shareholders PLN24.80 (US$6.07) per share. The price, according to previous company announcements, equates to a 20% premium against the June 12 spot price. The gaming giant will acquire any outstanding shares through “compulsory acquisition proceedings,” according to an announcement.
Entain Maintains M&A Momentum
Entain announced a year ago that mergers and acquisitions were high on the priority list. It has since backed up that statement through several acquisitions in various markets. Entain CEE purchased Croatia’s SuperSport Group last August and its parent company purchased Angstrom Sports last month.
However, it hasn’t always been a smooth ride for Entain. In order to complete its STS acquisition, the company had to offer additional equity in exchange for money. That didn’t go over well with some shareholders, who argued that it weakened their positions.
Industry experts and analysts are closely monitoring the development, which could trigger a series of strategic moves within the sector. The deal’s closure could lead to a ripple effect, prompting other gaming and entertainment companies to reevaluate their strategies and partnerships.
The successful acquisition of STS Holdings by Entain not only signifies a transformative moment for both companies but also showcases the dynamic nature of the gaming and entertainment industry. As the sector continues to evolve, partnerships and mergers like this one have the potential to shape its future trajectory.
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Source: casino.org
