NetEnt’s Shareholders To Accept Evolution’s Offer For Combined Business

Following the public offer made by Evolution Gaming Group (EG) and in compliance with the Nasdaq Stockholm Takeover Rules, NetEnt’s Board of Directors has released a statement that strongly recommends shareholders to accept 0.1306 Evolution shares for each share in NetEnt.

Evolution Gaming Group made its offer public on 24 June 2020, proposing 0.1306 Evolution Gaming shares for each share in NetEnt. Guided by closing prices effective on the previous day, the Group values each share in NetEnt to SEK 79.93 while all shares in NetEnt to approximately SEK 19.6 billion. The world’s largest supplier of live casino sites has made it clear that the price is final and it will not increase the offer.

The acceptance period…

…for the offer is expected to begin on or around 17 August 2020 and expire on or around 26 October 2020, with timeframes being subject to change due to customary conditions (regulatory clearances are among them). NetEnt’s board of directors has taken into account many factors in evaluating the offer, concluding that EG shares represent the best current option.

“In the board’s opinion, NetEnt has a proven and well-defined strategy going forward. However, the board views a combination of NetEnt and Evolution Gaming as positive and believes it to be strategically sound, and the share consideration allows the Company’s shareholders to take part of the combined accelerated growth story and combination benefits,“ said in the statement.

Introducing the offer, EG, which recently announced Malaysian-tailored casinos, expressed firm confidence it will be able “to build a strong group together with NetEnt’s senior management and employees.“ It also stressed the company realizes “the value of NetEnt’s senior management and other employees,“ as well as appreciates that “their talent and dedication have been, and will continue to be, integral to NetEnt’s and the combined group’s success.“

Another important message is …

…that “Evolution does not currently foresee that the combination of the companies will have any material impact on Evolution’s or NetEnt’s respective employees, including their terms of employment or the locations where the companies currently operate.“

People from NetEnt believe in the great success of the combined business, announcing the creation of the world’s leading B2B provider of live dealer games and online slots. While the developer will be able to take advantage of Evolution’s strong position in the Live segment, the future combination will have „significant capabilities to leverage its strong position within the US states that have opened up for online casino.“

What’s more, the enlarged entity will secure “enhanced client and product diversification to better address a changing market environment“ and „will provide a robust basis for new and innovative products to the benefit of customers and end-users.“

Source: “Statement by the board of directors of NetEnt in relation to the public offer from Evolution Gaming“. NetEnt. June 24, 2020.