ladbrokes-coral-in-talks-over-takeover-by-gvc

Ladbrokes Coral in talks over takeover by GVC

Gambling giant Ladbrokes Coral is in "comprehensive" talks over a takeover by online competing GVC over a deal that might value the group at approximately ₤ 3.9 bn.

Under the proposals, GVC - which owns the Bwin and Sportingbet brand names - would hold 53.5% of the combined group.

The GVC will pay will depend on the result of the government's review of video gaming makers.

Ladbrokes Coral shares jumped 23% on news of the talks, while GVC's were up by 4%.
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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 might harm susceptible people.

GVC and Ladbrokes Coral said that the evaluation could effect on the profitability of Ladbrokes Coral's UK company.

Under the proposed takeover bet9ja's welcome offer, GVC will pay 160.9 p for each Ladbrokes Coral share, which would value the company at ₤ 3.1 bn.

However, if the result of the government's evaluation of gaming terminals is favourable to the betting industry, and imposes a higher limitation on repaired odds bets, then GVC will pay Ladbrokes Coral investors a so-called "contingent worth right" (CVR) of as much as 42.8 p per share. When added to the initial payment, this promotion code could value the company at as much as ₤ 3.9 bn.

The takeover of Ladbrokes Coral might proceed before the federal government reveals the result of its review. Following the result, GVC would then pay the CVR to Ladbrokes Coral shareholders.
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GVC and Ladbrokes Coral have actually formerly held speak about a takeover, but they broke down.
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"GVC got fortunate at the third effort and Ladbrokes Coral investors can count their profits," stated Neil Wilson, senior market expert at ETX Capital.
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"Whilst this promotion code bet9ja's welcome offer was constantly likely, many had actually thought GVC would wait till the government's triennial review of repaired chances wagering terminals was ended up before it would take place."

The "tie-up has constantly made good sense", he included.
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Isle of Man-based GVC "has little financial obligation and has the international and fast-growing online presence, Ladbrokes Coral has the physical footprint, High Street name and sports book".
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Under takeover rules GVC now has until 4 January to choose whether to make a firm bet9ja's welcome offer for Ladbrokes Coral or to withdraw.
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Government to review betting makers

24 October 2016

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