GVC Proposes Bwin.party Online Gambling Takeover

Published Friday, July 10, 2015 - Online-Casinos.com
GVC Proposes Bwin.party Online Gambling Takeover

The internet betting industry has been watching the news for any sign that bwin.party Digital Entertainment will turn the corner and be acquired by another online gambling entity. That day has arrived with the confirmation that GVC Holdings has made an offer to purchase bwin.party in a cash and stock deal valued at approximately €1.3bn or $1.4bn dollars. The entities said they would now work together to secure "acceptance of its (the) proposal and, in turn, will be making an offer to bwin.party shareholders". 

Partnering with mega online gambling firm Amaya Gaming, GVC confirmed they were working together to complete a reverse takeover of bwin.party. A bwin.party  spokesperson said, “The board has considered the GVC proposal, the potential benefits of which it believes can accrue to bwin.party shareholders from a combination of the two companies and the commitment shown to resolving a number of transaction-related issues, and has determined to work with GVC so that they can finalise their offer over the coming days,” adding “There can be no guarantee that a formal announcement of a transaction will be made by GVC or any other party and the board will make further announcements in due course.”

GVC's proposal could increase the chances of a bidding war with rival online gambling company 888 Holdings, which made a proposal in May to purchase bwin.party Digital Entertainment.  GVC Chief Executive Officer Kenneth Alexander commented that a combined business would offer GVC and bwin.party shareholders an “excellent opportunity”.

Alexander continued to explain, “Any offer made by GVC for bwin.party would include part of the consideration in new GVC shares. “Based on our experience with the successful Sportingbet acquisition and restructuring, we believe that the potential combination of GVC and bwin.party would result in substantial financial and operating synergies and represent an excellent opportunity for both GVC and bwin.party shareholders.”

 

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