Entain acquisition of STS nears completion following shareholder approval
Polish operator’s shareholders give unanimous support to the £750m acquisition following initial tender offer in June
STS shareholders have given their overwhelming approval to Entain’s proposed £750m acquisition of the Polish market leader.
The acceptance period for the deal ended on 16 August, with shareholders holding 99.3% of total issued shares in STS accepting the deal.
Following the shareholders’ approval, the deal is expected to complete on 24 August.
Entain also stated that it intends to initiate compulsory acquisition proceedings in respect of the shares not included in the offer, and it will also commence the de-listing of STS from the Warsaw Stock Exchange.
Before the shareholder vote, current STS CEO Mateusz Juroszek and his father Zbigniew entered into a binding agreement to accept the offer.
Entain put forth its tender offer to acquire STS in June.
Entain offered to acquire 100% of STS at a purchase price of PLN24.8 (£4.75) per share, which puts the value of the deal at £750m.
STS will become part of Entain Central and Eastern Europe (CEE), a joint venture between Entain and EMMA Capital. As part of the agreement, Mateusz Juroszek will retain his role as CEO of STS and take up a position on the board of directors of Entain CEE.
When the deal was announced, Eminence Capital, which holds around 13.2 million shares in Entain, which equates to around 2.1% of the company, expressed that it found the deal “perplexing on many levels” in an open letter published in June.
The New York-based investment fund said the move for the Polish market leader was “destructive to shareholders”.
In the open letter, the firm said Entain already possessed two valuable assets in the form of its 50% stake in the BetMGM JV and its impressive international business.
Eminence Capital added that it was “outraged” by the move and that the 8% drop in Entain’s shares when the deal was announced showed that other shareholders held similar sentiments.