GVC share price fall could derail bwin.party bid - report

GVC share price fall could derail bwin.party bid - report

Monday, September 21, 2015 Totally Gaming
Bwin.party shareholders are expected to vote in early December

GVC’s takeover of bwin.party could be cast in doubt by the company’s falling share price, according to a report in the UK.

A story in The Independent newspaper said that the accepted offer of approximately £1.116bn (€1.4bn/$1.6bn) had been “thrown into renewed question” because the dip in stock value since the announcement meant that GVC’s offer – partly made up of the company’s shares - is now worth no more to bwin.party shareholders than 888’s bid.

TotallyGaming.com understands that the bwin.party shareholder vote will be in early December, although no date has yet been announced.


The accepted September 4 offer was worth 25p in cash and 0.231 new GVC shares, and was said to be worth “129.64p based on GVC’s share price on September 3”. GVC’s share price hit 453p on that day – when it replaced 888 as the bwin.party board’s preferred bidder - but had dropped by 11.9 per cent to 399p by Monday lunchtime. 

The Independent report said: “From valuing bwin at 130p a share at the time of the bid, it has now fallen to just 116p. Meanwhile, shares in 888 have remained fairly steady, so its suggested cash and shares offer would still have been at the level of around 115p-116p which was rejected by bwin.

“The collapse in GVC’s shares has also meant heavy paper losses for investors who bought £150m of new stock in the bidding company as part of its financing for the deal.”

Bwin.party said that its acceptance of GVC’s bid was related to synergies as well as the value of the offer. 

On September 4, Philip Yea, chairman of bwin.party, said: “In recommending the offer from GVC, the board has taken into account many factors including, but not limited to, the headline value per share and the consideration being offered, the level, timing and deliverability of the financial synergies to be generated and the enlarged Group's growth strategy in an increasingly competitive marketplace.”

The Independent also reported that Sportingbet-owner GVC “is expected to break off PartyGaming’s casino operations and sell them in order to focus on the sports betting business”.


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