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Entain faces US-based obstacle in bid to buy Baltic-focused business

Texas-based shareholder Alta Fox Capital said it believes the offer of 40 Swedish krona per Enlabs share "is considerably too low"

Entain PLC -

Entain PLC (LON:ENT) looks likely to have some difficulty completing its agreed acquisition of Baltics-focused gambling group Enlabs as a minority shareholder says the price is too low.

Earlier this month the Ladbrokes owner said its cash offer of 2.8bn Swedish krona (£250mln) had been recommended by the Stockholm-listed company.

Alta Fox Capital, based Fort Worth, Texas, said in a statement that it believes the offer of 40 Swedish krona per Enlabs share "is considerably too low and does not compensate shareholders for the excellent growth prospects of Enlabs as a standalone entity".

Alta Fox said it owns 3.34% of Enlabs' total shares outstanding.

It appears that, including Alta Fox, shareholders accounting for more than 10% of Enlabs shares support this view, said broker Peel Hunt. 

"If Entain were not able to complete the £250m acquisition of Enlabs it would not throw the group off its overall strategic track, but it would be a headache for the new CEO to inherit once appointed."

Peel Hunt's analysts also pointed out that an article in the Sunday Times, which describes how 30 people reportedly lost a total of £12mln through gambling, "makes a strong case for regulatory change and is likely to attract the attention of policymakers". 

Quick facts: Entain PLC

Price: 1415 GBX

LSE:ENT
Market: LSE
Market Cap: £8.28 billion
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