Entain PLC’s share price dropped more than 10% on Wednesday morning following the news that it is acquiring market-leading Polish betting firm STS in a deal worth £750m ($948m). This was the largest daily drop in the company’s stock price in four months.
Entain will control 75% of STS’s shares, with EMMA owning the other 25%.
The gambling group announced on Tuesday evening that Entain Holdings (CEE) and its joint venture partner EMMA Capital will be acquiring STS in its entirety. The former controls the company’s operations in Central and Eastern Europe. Entain launched a tender to raise about £600m ($758m) to help finance the transaction. Following its completion, Entain will control 75% of STS’s shares, with EMMA owning the other 25%.
Entain believes the deal will create “attractive synergies” for its CEE operations. Talking about the acquisition, Entain CEO Jette Nygaard-Anderson spoke said: “STS is an exceptional business with a great brand, a compelling omnichannel offering, and an outstanding CEO and management team.”
She also mentioned that this deal is in line with the company’s strategy of acquiring high-quality businesses that have leading positions in growing and attractive regulated markets.
