US casino and entertainment conglomerate MGM Resorts has cleared major regulatory and governmental approvals in its pursuit of its LeoVegas acquisition.
Based in Las Vegas, MGM is targeting Stockholm-headquartered LeoVegas with a bid of €575m, first announced in early May, representing a 44.1% premium on LeoVegas’ closing price of SEK 42.32.
The company believes that the merger would generate strategic opportunities for growth and product acceleration outside of the US, with LeoVegas an established and recognised igaming brand in Europe.
An MGM statement read: “The completion of the offer is subject to the conditions stated in the offer document, including the receipt of all regulatory, governmental or similar clearances, approvals and decisions that are necessary to complete the transaction.
“MGM has received all relevant approvals. Therefore, the condition regarding the receipt of all necessary regulatory, governmental or similar clearances, approvals and decisions is fulfilled.”
When disclosing the planned merger earlier this year, MGM stated that the development marked a ‘unique opportunity for the company to create a scaled global online gambing business.
An expansion of the firm’s operations in Europe is a core goal, alongside LeoVegas’ experienced online gaming management team, technological support structure and strong financial performance and profitability since 2014.
Publishing its H1 trading update last month, LeoVegas noted that any further rollouts in the US state of New Jersey had been halted until the takeover is completed, but will be resumed should the transaction fail to materialise.
The group had previously unanimously recommended the MGM bid to its stakeholders, seeing the merger as an opportunity to further strengthen its standing in the rapidly growing North American gaming space.
Gustaf Hagman, LeoVegas’ CEO, stated in the trading update that it ‘seems likely that the bid will be accepted’, which will result in a delisting of the firm’s shares from the Stockholm Nasdaq later this year upon finalisation.
MGM’s statement continued: “As previously announced, the acceptance period for the offer expires on August 30, 2022. Settlement for shares tendered in the offer will take place as soon as MGM announces that the conditions for the offer are fulfilled or if MGM otherwise decides to complete the offer.
“Provided that such announcement is made no later than on 31 August 2022, settlement is expected to be initiated on or around 7 September 2022.”