Enlabs shareholders to reject Entain takeover bid

Enlabs shareholders to reject Entain takeover bid

STOCKHOLM — A major Enlabs AB shareholder said Monday that a group of investors holding a combined 10.7% in the company have indicated they will reject Entain PLC’s bid for the company.

Alta Fox Capital Management LLC, which holds 3.34% of the shares in Enlabs, said it doesn’t plan to tender any shares at Entain’s current offer price.

Earlier this month, Ladbrokes owner Entain said it had agreed to buy Sweden’s Enlabs for 40 Swedish kronor ($4.76) a share, valuing the company at around SEK2.80 billion.

“This offer materially undervalues the company, represents a negligible premium of 1.1% to the pre-offer trading price, and has unusual circumstances that make us question why Enlabs’ Chairman, Niklas Braathen, accepted such an inadequate offer,” Alta Fox said.

“The fact that Entain will compensate Braathen as a senior executive post-deal and that the CEO of Entain just announced his departure is highly unusual. It leads us to conclude that while this is a good deal for Entain, it is a bad deal for NLAB minority shareholders,” it said.

Alta Fox said it has spoken with other large shareholders, a portion of which have signed in support of this view.

It added that a minimum fair price would be SEK55 a share.

Alta Fox said it had non-binding signatures from investors that will reject the current deal, including Hans Isoz, who holds 2.58% of the shares, Topline Capital, which holds 2.44%, Jimmy Jonsson, who holds 1.71% and Ludwig Pettersson, who holds 0.63% of the shares.

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