ladbrokes-coral-in-talks-over-takeover-by-gvc

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Ladbrokes Coral in talks over takeover by GVC
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Gambling giant Ladbrokes Coral remains in "in-depth" talks over a takeover by online competing GVC over a deal that might value the group at as much as ₤ 3.9 bn.

Under the propositions, GVC - which owns the Bwin and Sportingbet brand names - would hold 53.5% of the combined group.

The maximum cost GVC will pay will depend on the outcome of the federal government's evaluation of video gaming devices.
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Ladbrokes Coral shares jumped 23% on news of the talks, while GVC's were up by 4%.

The Department of Culture, Media and Sport has said it will cap the size of stakes bettors can make on fixed-odds betting terminals, amid concerns they might hurt susceptible people.

GVC and Ladbrokes Coral said that the review might effect on the success of Ladbrokes Coral's UK service.

Under the proposed takeover offer, GVC will pay 160.9 p for each Ladbrokes Coral share, which would value the business at ₤ 3.1 bn.

However, if the outcome of the government's review of video gaming terminals is favourable to the gambling market, and imposes a greater limit on fixed chances bets, then GVC will pay Ladbrokes Coral investors a so-called "contingent value right" (CVR) of as much as 42.8 p per share. When added to the yohaig code original payment, this could value the business at up to ₤ 3.9 bn.

The takeover of Ladbrokes Coral might go ahead before the federal government announces the outcome of its evaluation. Following the outcome, GVC would then pay the CVR to Ladbrokes Coral shareholders.

GVC and Ladbrokes Coral have previously held speak about a takeover, however they broke down.

"GVC got lucky at the 3rd effort and Ladbrokes Coral investors can count their payouts," said Neil Wilson, senior market analyst at ETX Capital.
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"Whilst this offer was always most likely, a lot of had believed GVC would wait until the federal government's triennial review of repaired odds wagering terminals was finished before it would take place."

The "tie-up has actually constantly made sense", he included.
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Isle of Man-based GVC "has little debt and has the global and fast-growing online presence, Ladbrokes Coral has the physical footprint, High Street name and sports book".

Under GVC now has up until 4 January to decide whether to make a firm bet9ja's welcome offer for Ladbrokes Coral or to withdraw.

Government to evaluate wagering devices
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24 October 2016

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