The anticipated sale of Slovenia’s Sports Lottery (Športna Loterija) has come to an abrupt halt as both Entain and Superbet, the two potential acquirers, have withdrawn their applications to purchase a stake in the state-run sports betting monopoly. Slovenia’s Ministry of Finance confirmed that negotiations for the acquisition have ceased following the withdrawals of the candidates.
Gambling giant Entain publicly announced its decision not to proceed with the acquisition. “We can confirm that, after weighing the opportunities, Entain has decided not to continue the process for the purchase of a stake in Sports Lottery for the time being,” stated a representative from the company.
However, no further details were provided regarding the specific reasons behind the withdrawal or the potential for future market entry in Slovenia. Entain had reportedly expressed interest in entering the domestic sports betting market and was willing to offer between €50 million ($54.5 million) and €60 million ($65.4 million) for the Sports Lottery.
The potential sale of Slovenia’s sports betting monopoly to a foreign operator had sparked controversy among the Slovenian public. Concerns were raised regarding the potential impact on Slovenian sports, as the revenue generated by Sports Lottery plays a crucial role in funding national sports initiatives.
The Olympic Committee of Slovenia, the Football Association of Slovenia, and the Skiing Association of Slovenia collectively hold a majority stake of 57% in the enterprise. While the Olympic Committee deemed the price offered by Entain acceptable, it stressed the importance of the buyer committing to financially support the development of sports in the country.
Superbet, a Romanian-based casino group operating in ten European countries, was also in contention for the stake in the state-owned sports betting operator. It was reportedly prepared to offer a slightly higher amount than Entain.
The news of both bidders withdrawing from the acquisition process follows Entain’s recent announcement of its planned acquisition of Polish sports betting company STS Holding for £750 million ($952.5 million) through a joint venture subsidiary.
Entain’s decision to fund the STS deal through the issuance of new shares drew criticism from Eminence Capital, a shareholder that owns a 2.1% stake in the London-listed business. Eminence Capital expressed dissatisfaction with the deal, referring to it as “illogical” and raising concerns about the company’s ability to allocate capital effectively and create long-term value.
“While we can support the company pursuing seemingly rational acquisitions, funding them with highly undervalued equity is an empire-building, shareholder value-destroying strategy,” said Eminence CEO Ricky Sandler. The executive also highlighted that Entain’s stock price had fallen 8% in the wake of the deal.
Original article: https://www.yogonet.com/international/news/2023/07/06/67807-entain-superbet-withdraw-bids-for-slovenian-sports-betting-monopoly-portna-loterija
