ENLABS - Entain bid enters acceptance period

There is a corner that finds the bid too low BoD Niklas Braathen answers his critics Acceptance period is 21 January – 18 February Alta Fox Capital gains support in requesting SEK 55/share On 21 January the acceptance period for the cash bid from Entain of SEK 40 per share for Enlabs commenced and will end on 18 February. Since our latest research update, the Texas-based hedge fund Alta Fox Capital released a statement on 18 January that declares its negative stance regarding the bid as it thinks it undervalues the company. According to the statement, Alta Fox believes the minimum fair price that would compensate shareholders is 55 SEK per Enlabs share and it does not plan to tender any shares at the current offer price of SEK 40 per share. The corner holds 10.

7% of the votes Alta Fox together with Collin McBirney from Topline Capital and private investors Hans Isoz, Jimmy Jonsson and Ludwig Pettersson, hold 10. 7% of the outstanding shares and votes of Enlabs, which is enough to block the current bid from Entain as it requires 90% acceptance, as stated in the initial PM from Enlabs on 7 January. We see three possible outcomes to the situation: 1) Entain will not go through with its offer 2) Entain will raise its offer in order to reach 90% acceptance or 3) Entain will accept the outcome of its current offer and be a majority shareholder of Enlabs, which will still be publicly traded.

Then at a later stage, when it is legally obliged to do it, it will go after the remaining shares with an increased offer. The stock is currently trading at SEK 45 per share, signaling that the market believes a higher bid is likely, but there are no guarantees. Niklas Braathen denies favorable stock compensation Current BoD Niklas Braathen answered his critics in an interview with Nyhetsbyrån Direkt on 18 January, declaring that his potential future role within Entain will be exactly the same as today as a working BoD, overseeing Enlabs operations.

He also denied any fa.