Interactive
US – Enlabs major shareholder condemns Entain’s ‘inadequate offer’
By Lewis - 19 January 2021
Alta Fox Capital Management, one of the largest shareholders of Enlabs, has written to fellow shareholders stating that Entain’s current offer price of 40 SEK per each Enlabs share ‘materially undervalues the company’.
The US hedge fund stated that the offer “represents a negligible premium of 1.1 per cent to the pre-offer trading price, and has unusual circumstances that make us question why Enlabs’ Chairman, Niklas Braathen, accepted such an inadequate offer.”
“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.
“Alta Fox has retained legal counsel to protect our interests in this matter and has spoken with other large shareholders, a portion of which have signed in support of this letter and represent over 10 per cent of total shares outstanding.”
Alta Fox has said that Entain must compensate Enlab shareholders for its excellent growth prospects as a standalone entity, believing the minimum fair price that would compensate shareholders is 55 SEK per each Enlabs share.
Alta Fox confidently believes it has the support to block a squeeze-out of minority shareholders, legal counsel to ensure their fair treatment under Swedish law and the determination to obtain a fair price that is reflective of Enlabs’ standalone growth prospects.
