Ladbrokes Coral in Talks over Takeover by GVC
Ladbrokes Coral in talks over takeover by GVC
Gambling huge Ladbrokes Coral is in "in-depth" talks over a takeover by online rival GVC over an offer that could value the group at up to ₤ 3.9 bn.
Under the proposals, GVC - which owns the Bwin and Sportingbet brand names - would hold 53.5% of the combined group.
The optimum rate GVC will pay will depend on the result of the government's evaluation of gaming devices.
Ladbrokes Coral shares leapt 23% on news of the talks, while GVC's were up by 4%.
The Department of Culture, Media and Sport has said it will top the size of stakes bettors can make on fixed-odds betting terminals, amid concerns they may hurt susceptible people.
GVC and Ladbrokes Coral stated that the review might effect on the profitability of Ladbrokes Coral's UK company.
Under the proposed takeover deal, GVC will pay 160.9 p for each Ladbrokes Coral share, which would value the business at ₤ 3.1 bn.
However, if the outcome of the government's review of video gaming terminals is favourable to the gambling market, and enforces a higher limitation on fixed odds bets, then GVC will pay Ladbrokes Coral investors a so-called "contingent worth right" (CVR) of approximately 42.8 p per share. When contributed to the original payment, this might value the company at approximately ₤ 3.9 bn.
The takeover of Ladbrokes Coral might go on before the federal government reveals the outcome of its review. Following the result, GVC would then pay the CVR to Ladbrokes Coral shareholders.
GVC and Ladbrokes Coral have actually previously held talks about a takeover, but they broke down.
"GVC got fortunate at the third attempt and Ladbrokes Coral shareholders can count their earnings," said Neil Wilson, senior market analyst at ETX Capital.
Ladbrokes Coral in talks over takeover by GVC
Gambling huge Ladbrokes Coral is in "in-depth" talks over a takeover by online rival GVC over an offer that could value the group at up to ₤ 3.9 bn.
Under the proposals, GVC - which owns the Bwin and Sportingbet brand names - would hold 53.5% of the combined group.
The optimum rate GVC will pay will depend on the result of the government's evaluation of gaming devices.
Ladbrokes Coral shares leapt 23% on news of the talks, while GVC's were up by 4%.
The Department of Culture, Media and Sport has said it will top the size of stakes bettors can make on fixed-odds betting terminals, amid concerns they may hurt susceptible people.
GVC and Ladbrokes Coral stated that the review might effect on the profitability of Ladbrokes Coral's UK company.
Under the proposed takeover deal, GVC will pay 160.9 p for each Ladbrokes Coral share, which would value the business at ₤ 3.1 bn.
However, if the outcome of the government's review of video gaming terminals is favourable to the gambling market, and enforces a higher limitation on fixed odds bets, then GVC will pay Ladbrokes Coral investors a so-called "contingent worth right" (CVR) of approximately 42.8 p per share. When contributed to the original payment, this might value the company at approximately ₤ 3.9 bn.
The takeover of Ladbrokes Coral might go on before the federal government reveals the outcome of its review. Following the result, GVC would then pay the CVR to Ladbrokes Coral shareholders.
GVC and Ladbrokes Coral have actually previously held talks about a takeover, but they broke down.
"GVC got fortunate at the third attempt and Ladbrokes Coral shareholders can count their earnings," said Neil Wilson, senior market analyst at ETX Capital.