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GVC in talks to acquire Ladbrokes Coral
Posted on Thursday, 07 December 2017 14:08
GVC Holdings has entered discussions over a potential purchase of UK-based betting and gambling company Ladbrokes Coral after submitting a non-binding proposal.
Under the terms of the proposed transaction, the buyer will pay 32.70 pence in cash and issue 0.14 shares in itself for every item of stock in the target.
This equates to an offer price of 160.90 pence per share in Ladbrokes Coral, representing an 18.6 per cent premium over the company’s close of 135.70 pence on 6th December, the last trading day prior to the potential deal being announced.
Should an acquisition go ahead on this basis, shareholders of the target would own 46.5 per cent of the business, with GVC investors holding the remaining 53.5 per cent.
GVC chief executive Kenneth Alexander will lead the enlarged firm upon closing.
The parties believe the proposed acquisition would create value for shareholders and result in the establishment of an online-led globally positioned betting and gaming business which would benefit from a multi-brand and multi-channel strategy.
In addition, the combined company would have a reinforced presence in the UK, Italy and Australia, among other large gaming markets, as well as a larger share of revenues from regulated/taxed markets.
However, the parties cautioned that no firm offer has been made as yet and there is no guarantee of a deal taking place.
Completion would also require approval from regulatory bodies, as well as shareholders of both parties, and would be subject to customary conditions.
A sale of Ladbrokes Coral has been on the cards for some time; analysts first speculated that the company could be a target as far back as September 2013.
Since then a number of potential suitors have been linked with bids for the business, namely Paddy Power, Boylesport, Playtech and CVC Capital Partners.
Shares in Ladbrokes Coral were trading up at GBP 169.50 as of 09:20 on 7th December.
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