VC’s takeover offer is now almost identical in value to the one bwin.party rejected from 888, calculations by The Independent show.
GVC’s shares have tumbled since its offer was accepted. As much of its bid was to be funded by bwin.party’s shareholders accepting GVC shares instead of cash, the whole value of its offer has sunk, too.
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 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.
At the time of accepting the offer, bwin management said it was not all about the value of the deal. GVC’s plan would bring cost savings through quicker than 888, it said. However, observers have questioned the logic of choosing a smaller player to take it over. GVC is expected to break off PartyGaming’s casino operations and sell them in order to focus on the sports betting business.