The proposed merger between Kings Entertainment and Sports Venture Holdings (SVH), the holding company of Canadian sportsbook Bet99, is under threat due to the resistance of SVH.
A business combination between the two companies – described as ‘transformative for the Canadian sports betting sector’ by Kings CEO Steve Budin – was announced last May before securing shareholder approval in October.
Kings was set to significantly diversify its business operations via the merger, notably solidifying a standing in sports betting and online casino.
This widening of its product range would be accompanied by and reflected in a group-wide rebranding which would see the company change its operating identity from Kings Entertainment to Interactive Entertainment Group.
However, there have since been three extension agreements to complete the merger while the outside date to close the Business Combination Agreement was extended to Mar. 17.
Despite ‘months of consistent effort’ on the part of Kings, the company contends that SVH is ‘refusing to complete’ the merger.
Kings is now ‘considering all options with respect to the enforcement of the Business Combination Agreement, the loan and its other rights’.
SVH has not yet issued a statement on the matter.