9th Jul 2015 06:53
LONDON (Alliance News) - GVC Holdings PLC has tabled a formal takeover offer for bwin.party digital entertainment PLC that values its online gambling rival at 110 pence per share, equivalent to about GBP906.5 million, the companies said on Thursday.
A takeover would be paid for in cash and new shares issued by GVC, the companies said.
"The board has considered the GVC proposal, the potential benefits of which it believes can accrue to bwin.party shareholders from a combination of the two companies and the commitment shown to resolving a number of transaction-related issues, and has determined to work with GVC so that they can finalise their offer over the coming days," bwin.party said in a statement.
GVC Chief Executive Kenneth Alexander said he believes a combination of the two businesses would have "substantial financial and operating synergies".
Both companies said there is no certainty of a deal.
Separately, bwin.party said it is confident in its outlook for its current financial year, with gaming revenue in the three months to the end of June in-line with the company's expectations. Sports turnover was "ahead" of plan, bwin.party said, though gross win margins were "below normalised levels".
By Samuel Agini; [email protected]; @samuelagini
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