LeoVegas rocked by allegations of insider trading
Nasdaq Stockholm-listed operator pledges to “fully assist” Swedish authorities following revelations
LeoVegas has been targeted by the Swedish Economic Crime Authority (Ekobrottsmyndigheten) over allegations of insider trading in the company’s shares.
Details of the investigation have not been disclosed, however EGR has learned that investigators visited LeoVegas’ offices in Stockholm this morning in connection with the allegations.
When contacted by EGR, SECA refused to comment further, issuing the following statement: “We can confirm that personnel from the Swedish Economic Crime Authority visited LeoVegas offices in Stockholm this morning.
“Aside from that we cannot further comments regarding the scope of the investigation,” the authority added.
It is unclear if the allegations will impact the $607m takeover of the LeoVegas business by MGM Resorts International following its public tender offer for the Malta-headquartered firm.
However, the offer price represents a premium of 44% on the value of the operator’s shares, something which could fluctuate if allegations of insider trading prove true.
Reports on Swedish news website DI have suggested MGM’s offer for LeoVegas was leaked in advance of the bid becoming public, something which prompted a significant increase in the firm’s share price, however these suggestions have been dismissed by the firm’s board.
In comments reported by DI, LeoVegas chairman Per Norman said: “No, that’s not our view. Leo Vegas is one of the few semi-large companies with its own platform and a fantastic brand. So for a land-based operator, it will be a pretty natural candidate to look at,”.
In early trading on the Nasdaq Stockholm, shares in LeoVegas dropped 0.15%, trading at a price of SEK60.1.
Issuing its own statement, LeoVegas confirmed the SECA investigation, but suggested it would provide any and all assistance to SECA investigators.
“On [7 June] LeoVegas was contacted by the Swedish Economic Crime Authority due to a preliminary investigation concerning suspected insider trading in the company’s shares,” LeoVegas said.
“LeoVegas is fully assisting the authorities in their investigation. No employee, member in the management team or board member in the company has been notified about any criminal suspicion.
“The company has no further information to provide,” the firm added.