Entain Plc has released all files connected to a proposed strategy to bookbuild ₤ 600m in new capital, which will be mainly used to get STS Group - Poland's largest bookie.

The London Stock Exchange (LSE) has been notified that shares of the FTSE100 gambling group will be offered to institutional financiers through an accelerated bookbuild process. In addition, Entain will host a 'separate retail offer' to typical market financiers via the PrimaryBid platform.

The filing notified that "Entain CEE has launched a tender offer (the "Offer") to acquire 100% of STS Holding S.A. ("STS"), the leading sports-betting operator in Poland noted on the Warsaw Stock Market (WSE)."

The acquisition will be brought out by the Entain CEE system, in partnership with personal equity fund EMMA Capital, who are dedicated to funding 25% of the deal.

Entain CEE has priced an offer to get the entire stake of STS at a purchase cost of PLN 24.80 per share, representing a significant premium of 35% to the 6-month volume weighted typical cost. The deal also includes a 28% premium to the 3-month volume weighted typical price and a 20% premium to the spot cost since 12 June 2023 - a premium that values STS Group at circa ₤ 750m.

Dealmakers outlined that the acquisition of STS provides the straight-out opportunity for Entain to end up being the leading sports betting platform for Central and Eastern Europe (CEE), taking the gold podium place in the region's largest marketplace.

Jette Nygaard-Anderson, Entain's CEO, commented "We are thrilled to be acquiring the leading sports-betting operator in Poland, which is an extremely amazing and fast-growing market. STS is a remarkable business with a great brand name, a compelling omnichannel offering, and an exceptional CEO and management team."

The deal is perfectly aligned with our Entain CEE technique and our larger M&A method of getting high quality companies with leading positions in attractive, growing and regulated markets. Expansion across Central and Eastern Europe stays a core part of our development plans, and STS will be an essential part of our platform in that area.

The Juroszek Family, represented by CEO Mateusz Juroszek and his father Zbigniew Juroszek, who collectively own a 70% shareholding in STS, have entered into a binding contract and accepted a deal.

Mateusz Juroszek will continue to lead the business and sign up with the board of Entain CEE, leveraging his know-how in driving growth in the Polish gaming market.

"We could not have actually found a much better partner to help us take STS into the next phase of its growth, and it is clear that Entain shares our ambition and vision for its future. I look forward to continuing to lead and grow STS, and to working in close partnership with the Entain CEE team." - check out a statement by Juroszek

The Entain CEE endeavor was established last summertime, following the ₤ 690m purchase of Croatia's SuperSport. Entain maintains a majority stake of 75% in the organization formed in collaboration with EMMA Capital.