LeoVegas is beneath investigation by the Swedish authorities for insider buying and selling. [Image: Shutterstock.com]
A shock go to
Ekobrottsmyndigheten, the Swedish Financial Crime Authority (SECA), made an “unannounced go to” to LeoVegas’ Stockholm places of work early Tuesday.
totally cooperating with the probe
Particularly, authorities went to analyze claims of insider buying and selling. LeoVegas, a Swedish on-line gaming operator, stated that it’s totally cooperating with the probe; it additionally stated that any questions from reporters have to be channeled by the authorities.
None of LeoVegas’ workers, board members, or executives stand accused of any authorized wrongdoing.
Issues with the sale
LeoVegas confirmed studies that SECA paid a go to to the Stockholm places of work in a press release Tuesday morning.
MGM’s bid was based mostly on a 44% premium
The investigation comes after MGM Resorts made a bid to buy the corporate for $607m final month. It’s unclear if the hang-up will delay or cancel the sale, however it does convey it into query. MGM’s bid was based mostly on a 44% premium of LeoVegas’ closing worth of shares, which could possibly be affected by the probe.
Swedish information web site DI recommended that MGM’s bid was leaked in an effort to drive up the worth, though the agency’s board has since dispelled these claims. DI additionally reported that LeoVegas chairman, Per Norman, opposed the rumors.
“Leo Vegas is without doubt one of the few semi-large corporations with its personal platform and a incredible model,” defined Norman. “So for a land-based operator, it will likely be a reasonably pure candidate to have a look at.”
A transparent impression already
The operator beforehand supplied to help MGM in an audit related to the bid. This included a evaluate of the corporate’s strategic and monetary standing, future growth, and potential dangers.
Nonetheless, the latest intervention from SECA precipitated LeoVegas’ buying and selling worth to drop .15% to SEK 60.1 ($6.13).
LeoVegas is headquartered in Stockholm and holds eight working licenses in Scandinavia and surrounding Europe. It was based in 2011 by CEO Gustaf Hagman and Chairman of the Board & Managing Director Robin Ramm-Ericson.