LeoVegas Subject Of Insider Trading Investigation
Swedish-based operator LeoVegas was yesterday rocked by allegations of illicit financial activity. Arriving unannounced at their flagship Stockholm offices, the Swedish Economic Crime Authority commenced their probe into the iGaming giant. It’s believed that legal concerns stem from MGM Resorts’ recent acquisition attempt, with suspicions raised as to whether LeoVegas employees engaged in internal share trading.
The casino and sportsbook firm has asserted that none of its colleagues were aware of any alleged criminal undertakings, inclusive of its presiding senior leadership team. However, LeoVegas has already stated on record that it’s prepared to support the SECA with its ongoing investigation.
On the cusp of April and May, MGM Resorts launched a huge takeover bid of the mobile gaming platform, tabling an initial offer of $607m. This equated to a 44% uplift on the closing share price of April trading, with the Nevada-headquartered casino operator valuing the business at a substantial SEK61 ($6.16) per share. By 2nd May, LeoVegas’ share price had surged so significantly that it almost drew level with the inflated bid put forward three days earlier. Share valuation has remained fairly stagnant since, closing yesterday at SEK60.20 despite the Swedish Economic Crime Authority’s intervention.
In a statement made to Nasdaq Stockholm yesterday, LeoVegas confirmed there had been an ‘unannounced visit’ to their premises, and emphasized that all questions relating to the event, and any rumoured allegations, should be directed towards the investigating organization.
