17th Jul 2015 06:16
LONDON (Alliance News) - 888 Holdings PLC on Friday said it has struck a deal to acquire FTSE 250-listed online gaming rival Bwin.Party Digital Entertainment PLC in cash and shares.
888 has been competing with AIM-listed rival GVC Holdings PLC to acquire Bwin.Party, with the GVC bid having been backed by Canadian gaming company Amaya Gaming Inc. GVC made a bid for Bwin.Party last week which valued the company at 110 pence per share, or GBP906.5 million.
The 888 offer is lower than GVC's offer, valuing Bwin.Party at a total of GBP898.3 million. The consideration comprises 39.45 pence in cash and 0.404 new 888 shares per Bwin.Party share.
888 said the offer values Bwin.Party shares at 104.09 pence, a 16.4% premium to their closing price on May 14, when Bwin.Party first entered talks with its potential suitors.
The offer will include a Mix and Match Facility, so that Bwin.Party shareholders will be able to elect to vary the proportions of cash and new 888 Shares they receive, subject to offsetting elections made by other Bwin.Party shareholder, 888 said.
"This is a transformational opportunity for 888 in the consolidating online gaming industry, which is expected to grow significantly over the coming years. The enlarged group will benefit from significantly enhanced scale, an improved product offering as well as significant cost and revenue synergies," said 888 Executive Chairman Brian Mattingley.
By Sam Unsted; [email protected]; @SamUAtAlliance
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