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bwin.party deal too expensive for GVC?

Tuesday, 22 September 2022 13:39

 

Following the fall in GVC Holdings's share prices in the wake of accepting the deal by board members at bwin.party, some doubt has been cast over the deal to purchase bwin.party. 

 

bwinparty

When bwin.party dropped 888 for GVC, the share price was 130p. Now GVC stands at 116p, which equates the same value as 888 offered as the GVC's deal centered on the value of their shares at 130p. 

 

Chairman of bwin.party Philip Yea said: “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 deliverability of the financial synergies to be generated and the enlarged group’s growth strategy in an increasingly competitive marketplace.” 

 

An insider involved in the deal notes that the GVC Holdings deal for bwin.party was a fixed rate at the 130p per share offer, which makes the deal more expensive for GVC because they will have to make up the difference for bwin.party or face the prospect of losing the prize after a long battle with 888 over control of the online gaming operator. 

 

 

 

 

 

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Source: iGaming Post
Date: September 22, 2015
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