21st Jul 2015 06:52
LONDON (Alliance News) - AIM-listed gaming company GVC Holdings PLC on Tuesday said it is considering its options regarding its bid for Bwin.Party Digital Entertainment PLC after the FTSE 250 target company agreed a deal last week to be acquired by 888 Holdings PLC.
GVC said there is no certainty that it will make a new offer for Bwin.Party but said it is considering its options. GVC had made a 110 pence per share bid for Bwin.Party earlier this month, in a bid backed by Canadian gaming company Amaya Gaming Inc.
But on Friday, Bwin.Party turned its back on the GVC offer to agree a merger with 888.
The 888 offer is lower than GVC's, valuing Bwin.Party at a total of GBP898.3 million. The consideration comprises 39.45p in cash and 0.404 of a new 888 share per Bwin.Party share. 888 said the offer values Bwin.Party shares at 104.09p, a 16% premium to their closing price on May 14, when Bwin.Party first entered talks with its potential suitors.
Bwin.Party had said it had decided to go with 888's offer as the bid from GVC, which though containing "many attractive features", also carried "additional execution risks".
Bwin.Party said its "directors have concluded, after further work with GVC and its advisers and after careful consideration, that 888's offer provides a higher degree of certainty for Bwin.Party shareholders and that GVC's modest incremental premium to 888's offer is not sufficient for the Bwin.Party board to recommend GVC's proposal over 888's offer."
By Sam Unsted; [email protected]; @SamUAtAlliance
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