Online Betting Company Bwin Accepts GVC Takeover Bid
Online betting business Bwin accepts GVC takeover bid
4 September 2015
Online wagering company Bwin has actually accepted a ₤ 1.1 bn takeover offer from GVC Holdings in preference to rival bidder, 888 Holdings.
Bwin had actually initially agreed to a deal from 888, worth about ₤ 900m, however GVC, the owner of Sportingbet, fought back.
Bwin - whose brand names include Partypoker, Partycasino and Foxy Bingo - stated GVC's offer was "fair and reasonable".
Bwin chairman Philip Yea said in a business video that shareholders were split about abandoning the 888 offer.
"There was a pretty even divided of those that expressed views one method or the other. But we likewise had a considerable block of shares that was happy to support the board on its deliberations,"
GVC's offer, external of 25p in money and 0.231 new GVC shares comes to almost 130p per Bwin.party share based on Thursday's closing rate.
Reducing costs
Bwin said the GVC deal provided ₤ 120m additional worth compared to the 888 bid.
The business said they were likewise swayed by greater expected savings and GVC's track record of integrating acquisitions, such as that of Sportingbet in 2013.
Earlier this week it was reported that GVC was prepared to introduce a hostile bid for Bwin.
The 888 board confirmed it had withdrawn from the bidding process saying it can not see adequate value in Bwin to increase its offer.
Stricter policies are pushing online betting companies to merge to try and minimize running costs.
Size is likewise viewed as crucial 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, but have because fallen.
GVC shares shut down by nearly 4%. Meanwhile 888 shares closed up by 0.31%.
Online betting business Bwin accepts GVC takeover bid
4 September 2015
Online wagering company Bwin has actually accepted a ₤ 1.1 bn takeover offer from GVC Holdings in preference to rival bidder, 888 Holdings.
Bwin had actually initially agreed to a deal from 888, worth about ₤ 900m, however GVC, the owner of Sportingbet, fought back.
Bwin - whose brand names include Partypoker, Partycasino and Foxy Bingo - stated GVC's offer was "fair and reasonable".
Bwin chairman Philip Yea said in a business video that shareholders were split about abandoning the 888 offer.
"There was a pretty even divided of those that expressed views one method or the other. But we likewise had a considerable block of shares that was happy to support the board on its deliberations,"
GVC's offer, external of 25p in money and 0.231 new GVC shares comes to almost 130p per Bwin.party share based on Thursday's closing rate.
Reducing costs
Bwin said the GVC deal provided ₤ 120m additional worth compared to the 888 bid.
The business said they were likewise swayed by greater expected savings and GVC's track record of integrating acquisitions, such as that of Sportingbet in 2013.
Earlier this week it was reported that GVC was prepared to introduce a hostile bid for Bwin.
The 888 board confirmed it had withdrawn from the bidding process saying it can not see adequate value in Bwin to increase its offer.
Stricter policies are pushing online betting companies to merge to try and minimize running costs.
Size is likewise viewed as crucial 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, but have because fallen.
GVC shares shut down by nearly 4%. Meanwhile 888 shares closed up by 0.31%.