Breaking news regarding the take over of Bwin.party. According to igaming business, the board of bwin.party this (Friday) morning accepted a takeover bid from GVC Holdings which results in the company withdrawing its earlier offer to accept a revised from rival online gaming company 888 Holdings.
The buy-out offer from GVC of 25 pence in cash and 0.231 new GVC shares compares to about 129.64 pence per share in bwin.party, which makes the total value of the deal at just over $1.6 billion dollars.
The offer represents a 45% premium to its stock price since the company first started receiving takeover proposals in May.
A quote from bwin.party’s chairman Philip Yea states “In recommending the offer from GVC, the board has taken into account many factors including, but not limited to, the headline value per share and the consideration being offered, the level, timing and deliver-ability of the financial synergies to be generated and the enlarged Group’s growth strategy in an increasingly competitive marketplace,”
He continues to say “As a result of these and other factors, including the proven track record of GVC’s management team in creating substantial value for shareholders, after a carefully managed and diligent review process, the board has withdrawn its recommendation for the 888 offer and is now advising bwin.party shareholders to vote in favor of the offer from GVC.”
CEO of GVC, Kenneth Alexander, chimed in by saying: “GVC is the natural partner for bwin.party considering our strong sports betting and online gaming pedigree.
“Sports betting is in our DNA and leveraging GVC’s experience of successfully acquiring and restructuring online gaming businesses, notably Sportingbet in 2013, we look forward to merging the two operations to deliver long term value for combined shareholders”.
“GVC has been working closely with bwin.party’s management and has identified many talented individuals with whom it looks forward to working to ensure the future success of the enlarged business.”
A revised takeover proposal from 888 Holdings was presented to bwin.party which leads to believe that’s the route they were going to pursue. GVC remained aggressive and were not prepared to give up on the take over. It appears perseverance paid off.