Bwin.party Accepts GVC Holdings Bid Over 888 Holdings
GVC Holdings recent threats to pullout of the deal with bwin.party have paid off. It has been confirmed that after a long fought battle, the board of bwin.party have withdrew their earlier recommendation of accepting 888 Holding offer in favor of accepting GVC Holdings offer.
Bwin.party accepted the $1.7 billion offer from GVC Holdings after 888 Holding stated they could not justify putting in a higher bid. In terms of the deal sports betting will make up about 70 percent of the new groups revenue with about $5 billion on sports wagers expected a year.
GVC Chief Executive Kenny Alexander will lead the new group and said,” I think unless you have scale you are going to struggle to compete. In combining GVC and Bwin we will create one of the market leaders in online sports betting… able to compete in this new landscape.”
Bwin.party Chairman Philip Yea commented on the deal,” 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. 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in creating substantial value for shareholders, after a carefully managed and diligent review process, the board has withdrawn its recommendation for the 888 offer and is now advising bwin.party shareholders to vote in favour of the offer from GVC.”