7th Aug 2015 09:44
LONDON (Alliance News) - GVC Holdings PLC on Friday said it has made a fully-funded proposal to acquire Bwin.Party Digital Entertainment PLC in cash and shares, as it continues to attempt to gatecrash 888 Holdings PLC's takeover of the FTSE 250-listed online gaming company.
GVC said it has made a bid under which Bwin.Party shareholders would get 25 pence in cash and 0.231 new GVC ordinary shares, valuing Bwin.Party at 125.5 pence per share.
That is an increase from the 122.5 pence per share bid GVC outlined in July. Making that bid, which was increased from its original 100 pence per share offer, GVC said it would finance the deal with a EUR400 million senior secured loan provided by affiliates of US private equity group Cerberus Capital Management LP. GVC also intends to raise GBP150 million through an equity placing in order to fund restructuring costs, the refinancing of existing Bwin.Party debt, and for additional working capital.
Bwin.Party confirmed the talks but both GVC and Bwin.Party said there remains no certainty that GVC will make a firm takeover offer. GVC said it remain in talks with Bwin.Party and its advisers with a view to progressing the open aspects of its Bwin.Party bid and hopes to complete this work in the next five-to-ten business days.
GVC, which is listed on AIM and has a market capitalisation significantly lower than that of Bwin.Party, saw its initial overtures for Bwin.Party spurned in favour of a bid from 888 which valued Bwin.Party at less than GVC's bid.
Bwin.Party 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."
GVC shares were down 0.7% to 432.00 pence on Friday, while Bwin.Party shares were flat at 117.1 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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