Ladbrokes Coral in Talks over Takeover by GVC
Ladbrokes Coral in talks over takeover by GVC
Gambling giant Ladbrokes Coral is in "detailed" talks over a takeover by online competing GVC over an offer that could value the group at as much as ₤ 3.9 bn.
Under the proposals, GVC - which owns the Bwin and Sportingbet brands - would hold 53.5% of the combined group.
The optimum cost GVC will pay will depend on the result of the federal government's evaluation of gaming makers.
Ladbrokes Coral shares jumped 23% on news of the talks, while GVC's were up by 4%.
The Department of Culture, Media and Sport has said it will cap the size of stakes bettors can make on fixed-odds betting terminals, amidst issues they might harm vulnerable individuals.
GVC and Ladbrokes Coral said that the evaluation 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 federal government's evaluation of video gaming terminals is favourable to the gaming industry, and enforces a greater limit on fixed odds bets, then GVC will pay Ladbrokes Coral investors a so-called "contingent value right" (CVR) of as much as 42.8 p per share. When contributed to the initial payment, this could value the company at approximately ₤ 3.9 bn.
The takeover of Ladbrokes Coral might go on before the federal government announces the outcome of its review. Following the outcome, GVC would then pay the CVR to Ladbrokes Coral shareholders.
GVC and Ladbrokes Coral have actually previously held discuss a takeover, however they broke down.
"GVC got lucky at the 3rd attempt and Ladbrokes Coral shareholders can count their profits," stated Neil Wilson, senior market expert at ETX Capital.
Ladbrokes Coral in talks over takeover by GVC
Gambling giant Ladbrokes Coral is in "detailed" talks over a takeover by online competing GVC over an offer that could value the group at as much as ₤ 3.9 bn.
Under the proposals, GVC - which owns the Bwin and Sportingbet brands - would hold 53.5% of the combined group.
The optimum cost GVC will pay will depend on the result of the federal government's evaluation of gaming makers.
Ladbrokes Coral shares jumped 23% on news of the talks, while GVC's were up by 4%.
The Department of Culture, Media and Sport has said it will cap the size of stakes bettors can make on fixed-odds betting terminals, amidst issues they might harm vulnerable individuals.
GVC and Ladbrokes Coral said that the evaluation 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 federal government's evaluation of video gaming terminals is favourable to the gaming industry, and enforces a greater limit on fixed odds bets, then GVC will pay Ladbrokes Coral investors a so-called "contingent value right" (CVR) of as much as 42.8 p per share. When contributed to the initial payment, this could value the company at approximately ₤ 3.9 bn.
The takeover of Ladbrokes Coral might go on before the federal government announces the outcome of its review. Following the outcome, GVC would then pay the CVR to Ladbrokes Coral shareholders.
GVC and Ladbrokes Coral have actually previously held discuss a takeover, however they broke down.
"GVC got lucky at the 3rd attempt and Ladbrokes Coral shareholders can count their profits," stated Neil Wilson, senior market expert at ETX Capital.