The governance of Bwin.party Entertainment has officially confirmed the reverse takeover of GVC Holdings for its entire business operations. The deal is worth £908 million, which is equivalent to $1.4 billion. Bwin.party Entertainment is set to work closely with GVC to make the deal that it will present to its shareholders formal, in order to proceed with the acquisition process.
Established in 2011, bwin.party offers a wide array of online gambling such as sports betting, poker and casino games. In 2014, it posted revenue of $675 million or 611.9 million euros. It has over 2000 employees from Europe, United States and India.
Combined with a new stock issuance in the merged operator, the deal is geared to entail a sum of cash valued at 100 pence per share, which represents 11% premium to its closing price.The deal is funded by GVC in partnership with Amaya Inc.
If the bid will be approved, GVC plans to take over the management of the newly merged company. However, for a two year period, AmayaInc. will be given the first right of purchase of the business by GVC.
GVC Holdings made its first announcement of the takeover in May. A few days later, 888 Holdings, a gambling company based in Gibraltar also announced its own approach. However, GVC is seen to be the most preferred to land on bwin.party entertainment acquisition, against 888 Holdings.
The following statement was released by bwin.party concerning the offer:
“The GVC proposal has been considered by the board. This is because of the potential benefits that it believes can amount to bwin.party entertainment shareholders from the partnership of the two companies. Besides that, it has also proved its commitment through resolving various issues related to transactions. Bwin.party is determined to work with GVC in order to finalize their offer in a few days to come.”
“However, it is only the boardthat will make further announcement. Therefore, you are not guaranteed that GVC or any other party will make the official announcement of the transaction.” Bwin.party added.
This article is published in: Betting deals
Tags: Bwin, Casino, GVC Holdings, poker
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