Putative bid discussions for Ladbrokes Coral announced by GVC

Thursday, Dec 07 2017 by

RNS out this morning. Main extract copied below.

Gus

—————


Statement regarding potential acquisition of Ladbrokes Coral Group plc ("Ladbrokes Coral") by GVC Holdings PLC ("GVC")



The board of Ladbrokes Coral and the board of GVC (the "Boards") announce that they are in detailed discussions regarding the possible combination of the two businesses, following the receipt by Ladbrokes Coral of a non-binding proposal from GVC regarding a possible offer for the entire issued and to be issued share capital of Ladbrokes Coral (the "Possible Offer").



It is expected that the Possible Offer would be structured as a scheme of arrangement pursuant to which GVC would acquire the entire issued and to be issued ordinary share capital of Ladbrokes Coral. Under the terms of the Possible Offer, Ladbrokes Coral shareholders would be entitled to 32.7p in cash and 0.141 ordinary GVC shares for each Ladbrokes Coral share, and a potential further value of up to 42.8p structured as a contingent value right ("CVR"). The value of the CVR, which would be satisfied by the issue of loan notes by GVC (the "Loan Notes"), would be determined by reference to the outcome of the Department of Digital, Culture, Media and Sport's current 'Review of Gaming Machines and Social Responsibility Measures' (the "Triennial Review") relating to the regulation of Category B2 Fixed-Odds Betting Terminals ("FOBTs") and its estimated impact on the run-rate profitability of Ladbrokes Coral's UK business, after giving effect to any mitigations. A summary of the proposed CVR mechanism is set out in Appendix I.



Based on the respective Ladbrokes Coral and GVC share prices as at the close of business on 6 December 2017, the Possible Offer values Ladbrokes Coral at 160.9p per Ladbrokes Coral share, equating to a total equity value of c.£3.1 billion, plus a CVR of up to 42.8p per Ladbrokes Coral share, equating to a total equity value of up to c.£3.9 billion (including the maximum CVR). It is expected that the Proposed Offer would include a mix and match facility allowing Ladbrokes Coral shareholders the opportunity to elect to receive more cash or more new ordinary shares in GVC, subject to offsetting elections made by other Ladbrokes Coral shareholders, as the case may be. The CVR would not be included in the mix and match facility.

Unlock this article instantly by logging into your account

Don’t have an account? Register for free and we’ll get out your way

Disclaimer:  

As per our Terms of Use, Stockopedia is a financial news & data site, discussion forum and content aggregator. Our site should be used for educational & informational purposes only. We do not provide investment advice, recommendations or views as to whether an investment or strategy is suited to the investment needs of a specific individual. You should make your own decisions and seek independent professional advice before doing so. The author may own shares in any companies discussed, all opinions are his/her own & are general/impersonal. Remember: Shares can go down as well as up. Past performance is not a guide to future performance & investors may not get back the amount invested.


Do you like this Post?
Yes
No
0 thumbs up
0 thumbs down
Share this post with friends



GVC Holdings PLC is a United Kingdom-based sports betting and gaming company. The Company offer sports betting, casino, poker and bingo gaming solutions via its technology platform. The Company operates in five operating segments: Online, UK Retail, European Retail, Corporate and Other segment. Its Online segment comprises betting and gaming activities from online and mobile operations. Its sports brands include bwin, Coral, Crystalbet, Eurobet, Ladbrokes and Sportingbet; and gaming brands include CasinoClub, Foxy Bingo, Gala, Gioco Digitale, partypoker and PartyCasino. Its UK Retail segment comprises betting activities in the shop estate in Great Britain, Northern Ireland and Jersey; European Retail segment comprises of all retail activities connected with the Republic of Ireland, Belgium, Italy and Spain shop estates; Other segments: includes activities primarily related to telephone betting, Stadia, Betdaq, on course pitches and Intertrader. more »

LSE Price
630.6p
Change
3.2%
Mkt Cap (£m)
3,669
P/E (fwd)
9.5
Yield (fwd)
5.9

Ladbrokes Coral Group Limited, formerly Ladbrokes Coral Group plc, is engaged in the betting and gaming industry. The Company's segments are UK Retail, European Retail and Digital. The UK Retail segment consists of betting activities in the shop estate in Great Britain. The Company is involved in traditional over-the-counter betting on football, horse and greyhound racing, as well as other sports and by machines. The European Retail segment includes all activities connected with Italy, Ireland, Belgium and Spain shop estates. The Digital segment consists of betting and gaming activities from online and mobile operations, which includes ladbrokes.com, coral.co.uk, galabingo.com, galacasino.com eurobet.it, Ladbrokes Belgium and Ladbrokes Australia. more »

LSE Price
168.25p
Change
-3.0%
Mkt Cap (£m)
n/a
P/E (fwd)
n/a
Yield (fwd)
n/a



  Is LON:GVC fundamentally strong or weak? Find out More »


1 Post on this Thread show/hide all

michael1962 11th Apr '18 1 of 1

my LCL shares have been deleted from my investment account, I have received new [0.141] GVC shares, but have not yet received the 32.7p cash portion. Barclays cannot answer my query except that they are awaiting the money from GVC. Does anybody know whats going on?

| Link | Share

Please subscribe to submit a comment






Stock Picking Tutorial Centre



Let’s get you setup so you get the most out of our service
Done, Let's add some stocks
Brilliant - You've created a folio! Now let's add some stocks to it.

  • Apple (AAPL)

  • Shell (RDSA)

  • Twitter (TWTR)

  • Volkswagon AG (VOK)

  • McDonalds (MCD)

  • Vodafone (VOD)

  • Barratt Homes (BDEV)

  • Microsoft (MSFT)

  • Tesco (TSCO)
Save and show me my analysis