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Online Betting Company Bwin Accepts GVC Takeover Bid

Online wagering business Bwin accepts GVC takeover bid

4 September 2015

Online betting company Bwin has accepted a ₤ 1.1 bn takeover deal from GVC Holdings in choice to competing bidder, 888 .

Bwin had actually initially consented to a deal from 888, worth about ₤ 900m, however GVC, the owner of Sportingbet, resisted.

Bwin – whose brand names consist of Partypoker, Partycasino and Foxy Bingo – said GVC’s deal was “fair and reasonable”.

Bwin chairman Philip Yea said in a business video that investors were divided about abandoning the 888 offer.

“There was a pretty even divided of those that expressed views one method or the yohaig code other. But we likewise had a considerable block of shares that was happy to support the board on its deliberations,”

GVC’s deal, external of 25p in cash and 0.231 new GVC shares concerns almost 130p per Bwin.party share based upon Thursday’s closing rate.

Reducing costs

Bwin said the yohaig code GVC deal provided ₤ 120m additional value compared with the 888 quote.

The company 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 this week it was reported that GVC was prepared to launch a hostile quote for Bwin.

The 888 board validated it had withdrawn from the bidding process stating it can not see adequate worth in Bwin to increase its offer.

Stricter policies are pressing online gaming business to merge to attempt and minimize running costs.

Size is also seen as important to make sure competitiveness in an online market buoyed by the use of tablets and mobiles.

Shares in Bwin, increased in early trading in reaction to the news, but have since fallen.

GVC shares closed down by almost 4%. Meanwhile 888 shares closed up by 0.31%.

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