Global online gaming giant Entain recently announced that it has been working on a deal to purchase STS Holding, the largest sports betting operator in Poland. It has now completed its mission, but at the expense of company shares.
In order to finance the acquisition, Entain had to turn to investors for some of the money. In doing so, it turned to institutional investors, offering about $750 million in company equity at a discount of 7%.
It seems like a smart move, given the projections for the Polish gaming market. The sports betting market, according to Entain, should see annual growth of about 12% over the next two years. In addition, if Poland advances online gaming legislation, STS will be able to jump into that space as well.
In the meantime, Entain is going to have to deal with a major shift in its stock price. From Tuesday afternoon to Wednesday morning, it lost about $202 a share.
Entain said that it’s paying about $568.93 million cash to buy STS, which went public on the Warsaw Stock Exchange in 2021. It expects the investment to have paid off after the first full year.
In order to finance the acquisition, Entain had to turn to investors for some of the money. In doing so, it turned to institutional investors, offering about $750 million in company equity at a discount of 7%.
It seems like a smart move, given the projections for the Polish gaming market. The sports betting market, according to Entain, should see annual growth of about 12% over the next two years. In addition, if Poland advances online gaming legislation, STS will be able to jump into that space as well.
In the meantime, Entain is going to have to deal with a major shift in its stock price. From Tuesday afternoon to Wednesday morning, it lost about $202 a share.
Entain said that it’s paying about $568.93 million cash to buy STS, which went public on the Warsaw Stock Exchange in 2021. It expects the investment to have paid off after the first full year.