GVC Finalises Ladbrokes Coral Deal Worth Potential £4bn
GVC Holdings has completed its takeover of Ladbrokes Coral in a deal that could be worth up to £4 billion.
The acquisition, which was originally agreed in December 2017, creates one of the world’s largest listed sports betting and gambling companies ever.
Ladbrokes was a founding member of the original FTSE 100 more than 34 years ago, but its shares have been delisted from the London Stock Exchange. A total of 271,816,558 ordinary shares of €0.01 each in the capital of GVC were created on Friday under the terms of the takeover deal.
Ladbrokes Coral shareholders received 32.7p per share as well as 0.141 new GVC shares each. There is also a contingent entitlement of up to 42.8p depending on how drastically the government eventually decides to limit the stakes of FOBTs. GVC shareholders own 53.5% of the combined group.
The figure of £4bn is calculated using the most favourable outcome for FOBT operators – a maximum bet of £50. The base value of the deal is £3.2bn, which will be the case if the maximum bet is limited to £2. Annual savings of £100m are anticipated under the new structure.
Kenneth Alexander, chief executive of GVC, said that combining a portfolio of established brands, proven technology and leading market positions in multiple geographies, is an exciting prospect.
In a dynamically evolving industry, the transaction creates an enlarged group with the scale, diversity, proprietary technology and management expertise to pursue many opportunities globally. – Kenneth Alexander, Chief Executive of GVC
John Kelly, chairman of Ladbrokes Coral, said: “In its relatively short time as a merged entity, Ladbrokes Coral has demonstrated why scale can be so effective in this market. The management team have delivered a very successful merger that has created a leading betting and gaming business built on strong brands well positioned in key markets.
“We have a leading multi-channel offer that utilises our retail and online businesses and offers us a promising future. The acquisition has compelling strategic rationale allied to an opportunity to use the best of both from proven management teams and will create material shareholder value. It secures earlier delivery of our long-term value potential, which is why the board of Ladbrokes Coral has unanimously recommended GVC’s offer.”
GVC Holdings brands include bwin, Sportingbet, partypoker, Casino Club and Foxy Bingo.