Online Betting Company Bwin Accepts GVC Takeover Bid
Online wagering company Bwin accepts GVC takeover bid
4 September 2015
Online wagering company Bwin has accepted a ₤ 1.1 bn takeover offer from GVC Holdings in preference to rival bidder, 888 Holdings.
Bwin had initially accepted a deal from 888, worth about ₤ 900m, however GVC, the owner of Sportingbet, resisted.
Bwin - whose brand names include Partypoker, Partycasino and Foxy Bingo - stated GVC's offer was "fair and affordable".
Bwin chairman Philip Yea stated in a company video that shareholders were split about abandoning the 888 deal.
"There was a quite even split of those that revealed views one method or the other. But we likewise had a substantial block of shares that mored than happy to support the board on its deliberations,"
GVC's deal, external of 25p in cash and 0.231 brand-new GVC shares concerns nearly 130p per Bwin.party share based on Thursday's closing price.
Reducing expenses
Bwin said the GVC offer provided ₤ 120m additional worth compared to the 888 quote.
The company said they were also swayed by greater expected savings and GVC's track record of incorporating acquisitions, such as that of Sportingbet in 2013.
Earlier today it was reported that GVC was prepared to launch a hostile quote for Bwin.
The 888 board verified it had withdrawn from the bidding procedure stating it can not see enough value in Bwin to increase its offer.
Stricter guidelines are pushing online betting companies to merge to attempt and reduce operating costs.
Size is likewise viewed as essential to guarantee competitiveness in an online market buoyed by the use of tablets and mobiles.
Shares in Bwin, rose in early trading in response to the news, however have actually because fallen.
GVC shares closed down by nearly 4%. Meanwhile 888 shares closed up by 0.31%.
Online wagering company Bwin accepts GVC takeover bid
4 September 2015
Online wagering company Bwin has accepted a ₤ 1.1 bn takeover offer from GVC Holdings in preference to rival bidder, 888 Holdings.
Bwin had initially accepted a deal from 888, worth about ₤ 900m, however GVC, the owner of Sportingbet, resisted.
Bwin - whose brand names include Partypoker, Partycasino and Foxy Bingo - stated GVC's offer was "fair and affordable".
Bwin chairman Philip Yea stated in a company video that shareholders were split about abandoning the 888 deal.
"There was a quite even split of those that revealed views one method or the other. But we likewise had a substantial block of shares that mored than happy to support the board on its deliberations,"
GVC's deal, external of 25p in cash and 0.231 brand-new GVC shares concerns nearly 130p per Bwin.party share based on Thursday's closing price.
Reducing expenses
Bwin said the GVC offer provided ₤ 120m additional worth compared to the 888 quote.
The company said they were also swayed by greater expected savings and GVC's track record of incorporating acquisitions, such as that of Sportingbet in 2013.
Earlier today it was reported that GVC was prepared to launch a hostile quote for Bwin.
The 888 board verified it had withdrawn from the bidding procedure stating it can not see enough value in Bwin to increase its offer.
Stricter guidelines are pushing online betting companies to merge to attempt and reduce operating costs.
Size is likewise viewed as essential to guarantee competitiveness in an online market buoyed by the use of tablets and mobiles.
Shares in Bwin, rose in early trading in response to the news, however have actually because fallen.
GVC shares closed down by nearly 4%. Meanwhile 888 shares closed up by 0.31%.