Alta Fox Capital And Other Enlabs Shareholders Representing More Than 10% Shares Outstanding Rejects Bid From Entain
STOCKHOLM, Jan. 18, 2021 /PRNewswire/ --
Fellow Shareholders of Enlabs AB,
Alta Fox Capital Management, LLC ("Alta Fox") is one of the largest shareholders of Enlabs AB (NLAB.ST) and currently owns 2,332,625 shares, representing 3.34% of total shares outstanding. Alta Fox does not plan to tender any shares at Entain's (LSE: ENT.L) current offer price of 40 SEK per each Enlabs share.
This offer materially undervalues the company, represents a negligible premium of 1.1% to the pre-offer trading price, and has unusual circumstances that make us question why Enlabs' Chairman, Niklas Braathen, accepted such an inadequate offer. The fact that Entain will compensate Braathen as a senior executive post-deal and that the CEO of Entain just announced his departure is highly unusual. It leads us to conclude that while this is a good deal for Entain, it is a bad deal for NLAB minority shareholders. Alta Fox has retained legal counsel to protect our interests in this matter and has spoken with other large shareholders, a portion of which have signed in support of this letter and represent over 10% of total shares outstanding.
If Entain wants to acquire NLAB, a highly accretive and strategic asset, Entain must compensate NLAB shareholders for its excellent growth prospects as a standalone entity. Alta Fox believes the minimum fair price that would compensate shareholders is 55 SEK per each Enlabs share. For any offer less than this price, we would prefer NLAB to remain a standalone entity. Alta Fox confidently believes we have the support to block a squeeze-out of minority shareholders, legal counsel to ensure their fair treatment under Swedish law (Alta Fox has retained Roschier Advokatbyrå), and the determination to obtain a fair price that is reflective of Enlabs' standalone growth prospects.
Additional information is available at www.altafoxcapital.com/nlab and interested parties can reach us at NLABfairprice@altafoxcapital.com.
Sincerely,
/s/ Connor Haley
Managing Partner
Alta Fox Capital Management LLC
Signatures of Shareholders in Opposition to Current Deal Price
Name |
Organization |
Shares Beneficially Owned |
% of Company |
Connor Haley |
Alta Fox Capital |
2,332,625 |
3.34% |
Hans Isoz |
Private Investor |
1,802,000 |
2.58% |
Collin McBirney |
Topline Capital |
1,709,300 |
2.44% |
Jimmy Jonsson |
Private Investor |
1,197,113 |
1.71% |
Ludwig Pettersson |
Private Investor |
439,472 |
0.63% |
Total |
10.70% |
/s/ Hans Isoz, Private Investor
/s/ Collin McBirney, Topline Capital
/s/ Jimmy Jonsson, Private Investor
/s/ Ludwig Pettersson, Private Investor
Disclaimer
Alta Fox Capital Management, LLC ("Alta Fox") is an investment adviser to funds that are in the business of buying and selling securities and other financial instruments. This information is provided for informational purposes only and does not constitute investment advice or an offer or solicitation to buy or sell an interest in a private fund or any other security. An offer or solicitation of an investment in a private fund will only be made to accredited investors pursuant to a private placement memorandum and associated documents.
Alta Fox may change its views about or its investment positions in any of the securities mentioned in this document at any time, for any reason or no reason. Alta Fox may buy, sell, or otherwise change the form or substance of any of its investments. Alta Fox disclaims any obligation to notify the market of any such changes.
Alta Fox has interacted with the other firms listed as signed supporters of this view. However, their share ownership is self-reported and not independently verified by Alta Fox. Moreover, these individuals could change their views at any time, and this does not represent any binding agreement between parties.
Contact:
Nicole Lacues
nicole@altafoxcapital.com
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