Shares in Entain Plc, formerly GVC Holdings, skyrocketed on January 4 following an £8.1 billion takeover bid from American gambling giants MGM Resorts. Investors pushed Entain’s share price up by 25%, closing at £14.16 per share, up from £11.33 per share at close of trading on January 1.
MGM Resorts has offered 0.6 of its shares for each Entain share. Based on Entain’s closing price on December 31, 2020, this represents a 22% premium of Entain’s share price. Should the deal go through, Entain shareholders would own 41.5% of the enlarged company.