DraftKings has been granted an extension in its efforts to acquire the UK-based sports betting giant Entain.
The previous deadline, October 19 at 5pm, has been extended to November 16, 2021, to allow further discussion to take place between the two sports betting companies.
DraftKings’ current proposal would offer 2,800 pence per Entain share consisting of 630 pence in cash and the rest payable in new DraftKings Class A common shares. This agreement is likely to be fixed immediately prior to the first agreed public announcement.
The total offering comes to $22bn.
Since the initial announcement regarding the proposed takeover on September 21, 2021, the two companies have been in discussion to explore the feasibility of the deal.
These talks include the total value creation for Entain shareholders, the terms of any proposed technology supply agreement with MGM Resorts International and the jointly owned BetMGM, governance rights regarding BetMGM, as well as regulatory clearances.
In a statement regarding the extension of this deadline, Entain said: “Discussions between the parties remain ongoing and in accordance with Rule 2.6(c) of the Code, Entain has requested, and the Panel on Takeovers and Mergers (the "Takeover Panel") has consented to, an extension to the deadline by which DraftKings is required either to announce a firm intention to make an offer for DraftKings in accordance with Rule 2.7 of the Code or to announce that it does not intend to make an offer, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies.”
The statement continued: “Such announcement must now be made by not later than 5.00pm on 16 November 2021. This deadline can be further extended by the Board of Entain, with the consent of the Takeover Panel.”
Following Entain's statement, DraftKings also commented on the decision to extend the deadline.
The sports betting brand said: "DraftKings (NASDAQ: DKNG) notes the announcement made by Entain earlier today relating to the extension of the deadline, under Rule 2.6 of the City Code on Takeovers and Mergers (the “Code”), for DraftKings either to announce a firm intention to make an offer for Entain (in accordance with Rule 2.7 of the Code), or to announce that it does not intend to make such an offer (in accordance with Rule 2.8 of the Code), to 5:00 p.m. (London time) on 16 November 2021. This deadline may be further extended with the consent of the Panel on Takeovers and Mergers, at Entain’s request."
