GVC purchase of Ladbrokes back on the table

[The Buzz]

Three months after it was announced that merger talks had "collapsed," GVC Holdings is back in advanced talks to acquire Ladbrokes Coral Group for as much as 3.9 billion pounds ($5.2 billion).

From Bloomberg:

GVC is offering 160.90 pence a share in cash and stock, plus a contingent value right worth as much as 42.80 pence a share, the companies said in a statement Thursday. That would represent a premium of 50 percent to Wednesday’s closing price for Ladbrokes.

“We think the combination makes sound strategic sense given the significant synergies” of 70 million to 100 million pounds, amounting to 15 percent to 20 percent of pro forma pretax profit, Morgan Stanley analyst Ed Young wrote in a note.

Ladbrokes Coral shares jumped as much as 29 percent, with GVC up as much as 8.3 percent, early Thursday in London.

A combination of GVC, which owns online gambling platforms including Partypoker and Sportingbet, and betting-shop operator Ladbrokes Coral could spark even more consolidation in the sector. Ladbrokes Coral, whose traditional betting shops in the U.K.’s town centers are fading, would get more exposure to the expanding digital gaming business, while GVC could reach more potential customers for its online platforms.

Read more here: https://www.bloomberg.com/news/artic...to-5-2-billion

And here: http://www.telegraph.co.uk/business/...lks-rival-gvc/

[Cash Bonus]

Wow! That would be quite an expensive payout.

[GlitzyBingo]

https://www.ft.com/content/351f9c43-...5-8d5c1bc81cc7

Think we should all brace ourselves!

[drifter8]

GVC is taking a rule of the "sinking" boats i.e look what has happened to bwin. Dramatic drop, about their affiliate program - sudden death to affiliates and very bad creative section.

[universal4]

As per this recent announcement it has become official and they have reached an agreement, see the following thread for more details.

https://www.gpwa.org/forum/ladbrokes...gs-243128.html

Rick
Universal4