Online betting company Bwin accepts GVC takeover quote
4 September 2015
Online wagering business Bwin has accepted a ₤ 1.1 bn takeover offer from GVC Holdings in preference to competing bidder, 888 Holdings.
Bwin had originally agreed to an bet9ja's welcome offer from 888, worth about ₤ 900m, but GVC, the owner of Sportingbet, combated back.
Bwin - whose brands include Partypoker, Partycasino and Foxy Bingo - said GVC's bet9ja's welcome offer was "fair and reasonable".
Bwin chairman Philip Yea stated in a company video that shareholders were split about deserting the 888 bet9ja's welcome offer.
"There was a quite even split of those that expressed views one method or the other. But we also had a substantial block of shares that was pleased to support the board on its considerations,"
GVC's deal, external of 25p in cash and 0.231 brand-new GVC shares comes to nearly 130p per Bwin.party share based upon Thursday's closing rate.
Reducing costs
Bwin stated the GVC bet9ja's welcome offer supplied ₤ 120m additional worth compared to the 888 bid.
The business stated they were also swayed by greater expected savings and GVC's performance history of integrating acquisitions, such as that of Sportingbet in 2013.
Earlier today it was reported that GVC was prepared to launch a hostile quote for Bwin.
the yohaig code 888 board validated it had withdrawn from the bidding procedure saying it can not see sufficient worth in Bwin to increase its offer.
Stricter guidelines are pushing online gambling companies to merge to try and minimize operating costs.
Size is likewise seen as essential to ensure competitiveness in an online market buoyed by the usage of tablets and mobiles.
Shares in Bwin, increased in early trading in reaction to the news, however have given that fallen.
GVC shares shut down by nearly 4%. Meanwhile 888 shares closed up by 0.31%.
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7 August 2015
GVC ups stakes in Bwin bidding war
27 July 2015
888 in takeover technique for Bwin
18 May 2015
Bwin.party
GVC Holdings
888 Holdings
