GVC takes lead in ambitious Ladbrokes Coral takeover bid

GVC takes lead in ambitious Ladbrokes Coral takeover bid

Friday, December 8, 2017 Posted by Luke Massey
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The proposed merger has been valued at £3.9 billion

GVC Holdings and Ladbrokes Coral have confirmed the restart of negotiations with a view to creating a global powerhouse for both digital and retail betting disciplines.

GVC Holdings takes the lead in an ambitious merger takeover of Ladbrokes Coral, valued currently at £3.9 billion. The company states that it will present Ladbrokes Coral shareholders with a 160.9p – 203.8p per share offer ‘dependent on the outcome of triennial review’.

Led by CEO Kenny Alexander, GVC has spent much of H2 2017 realigning its corporate assets in order to undertake the merger. In November, the company disposed of its significant Turkish betting operations, stating that it would now fully concentrate growing its business within regulated markets.

Acting as the UK biggest retail bookmaker, Ladbrokes Coral sees itself deeply exposed to the pending UK government triennial review, which is likely to reduce wagering levels on FOBTs machines, a key revenue generator for its business.

Under tougher business conditions, both FTSE operators will now seek to convince investors of a further merger. Both businesses are undertaking a consolidation phase from corporate enlargements in 2016; GVC acquiring bwin.party and Ladbrokes merging with Gala Coral UK.

In its joint update, both parties chose not to disclose any structural arrangements with regards to creating a new enterprise. GVC states that Kenny Alexander has been designated as the enterprise CEO, which will list as a FTSE100 company.

Acting as the deal leader, GVC investors would own a majority 54.5% shareholding in the combined enterprise, which deal stakeholders claim could be ‘bigger than UK high street retailer M&S’.

Totally Gaming says: In its merger notes, GVC and Ladbrokes Coral outlined that the proposed enterprise would be multi-brand and multi-vertical, with a high-tech competency. It will be interesting to track the development of what would be a global powerhouse for sports betting.

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