he FT report Tuesday is being widely quoted in the British business media and claims that the two companies have offered USD 1.39B in cash and stock for Bwin.Party. The deal values bwin.party shares at around 110p.
GVC would likely launch a share placement to help fund its bid, the FT speculated. Bwin.Party is also exploring a sale to online gaming rival 888 Holdings.
Consolidation in the gaming industry has gathered pace as high taxes and increased regulation in some of the biggest markets has hurt companies. Last month, Ladbrokes confirmed it was in merger talks with rival Gala Coral. Earlier this year, William Hill made a GBP 700 million (USD 1.074B) unsuccessful bid for 888.
bwin.party revealed last November that it was considering a range of proposals from interested parties. GVC Holdings and bwin.party have not yet responded to the FT article. Shares in bwin rose 0.4 percent to 100.6p Tuesday, giving the company a market value of GBP 823 million (USD 1.262B).
A trading update reefers briefly to the negotiations with bwin.party, noting: “As announced on 15 May 2015, GVC has submitted a proposal with a view to the Group acquiring the entire issued and to be issued share capital of bwin.party. This proposal would be jointly financed by GVC and Amaya, Inc and involves new debt facilities and the issue of new shares. Talks with Bwin.Party are continuing, although there can be no certainty that such talks will result in an offer being made. GVC will provide a further update for shareholders as and when appropriate.”