buys Ladbrokes Coral for $ 5.2 billion

GVC buys Ladbrokes Coral for $ 5.2 billion

The gaming holding GVC Holdings Plc reached an agreement to acquire the bookmaker company Ladbrokes Coral Group Plc for $ 5.2 billion or £ 3.9 billion. The deal should end at the end of the first or the beginning of the second quarter of 2019.

Under the deal, GVC Holdings will hold 53.5% of the combined company, and Ladbrokes Coral – 46.5% respectively. For each share Ladbrokes Coral GVC offers 32.7 pence, 0.141 shares of GVC Holdings, as well as the right to a conditional 42.8 pence in the event of a rise in the price of the transaction.

GVC buys Ladbrokes Coral for $ 5.2 billion

The final amount of the transaction will depend on the decision of the UK government on the maximum rate in the terminals. Now the maximum amount is £ 100, but it will surely be reduced. The new maximum will be from £ 2 to £ 50.

“Creating one of the world’s largest sports betting companies that unites famous brands and proven technologies is an exciting prospect. GVC has experience of successful integration of acquired companies. We believe that this deal will be excellent both for us and for Ladbrokes Coral,” said Kenneth Alexander, CEO of GVC Holdings.

It is expected that the merger will allow companies to cut costs annually by £ 100 million ($ 133.6 million).

The detailed talks between the two parties were first announced at the end of last year. In December 2016, The Financial Times wrote that the deal could reach £ 3.2 billion ($ 4.2 billion at current rates). But then the companies did not comment on the situation.

GVC Executive Director Kenneth Alexander, whose company already owns the brands Bwin , Sportingbet and Foxy Bingo, described the acquisition deal as “a truly exciting prospect.”

Read also: What waits online casinos in 2018

It is expected that the acquisition will be completed at the end of the first quarter or the beginning of the second quarter of 2019.

The companies said that the company will be a “fast-growing, diversified, international gambling group with online and retail businesses with more than 90% of net gaming revenue generated in locally regulated / taxable markets.”

The basic value of the transaction is £ 3.2 billion, under certain circumstances the amount can reach £ 4 billion.

“GVC has extensive experience in creating shareholder value due to the successful integration of acquired businesses, and the GVC board of directors believes that this transaction will create additional value for our shareholders and Ladbrokes Coral shareholders,” Alexander said.

Bookmakers Ladbrokes and Gala Coral finally merged into one company in November 2016. Negotiations on the merger were conducted from June 2015.

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