Deal Worth Up To £4 Billion

Published on December 23rd, 2017 5:57 am EST

Company logos GVC Holdings - Ladbrokes Coral Group - Year 2017.Earlier this week, GVC Holdings PLC, which owns Partypoker, revealed that they would be purchasing Ladbrokes Coral in a deal that could be worth as much as £4 billion.

This deal means that the combined GVC Holdings PLC / Ladbrokes Coral company will own brands such as Ladbrokes, Coral, Partypoker, Bwin, Eurobet, Foxy Bingo and Gamebookers.

Under the terms of the deal, Ladbrokes Coral shareholders will receive 32.7p in cash, 0.141 GVC shares "plus a contingent value right" worth up to 42.8p.

After the deal has been completed, GVC shareholders will own 53.5% of the combined company.

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This deal continues a trend of consolidation in the UK gambling market. There have been a number of deals over the past couple of years, including Ladbrokes/Coral, Paddy Power/Betfair and now GVC Holdings/Ladbrokes Coral.

The explosion of deals over the past 2-3 years have come as a result of new gambling regulations in the United Kingdom.

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Earlier this year, Stars Group Inc. CEO Rafi Ashkenazi said that his company was in the market for an acquisition, specifically one that would allow them to continue to penetrate the sports betting market.

With GVC Holdings PLC agreeing to a deal with Ladbrokes Coral, this takes a potential target for Stars Group Inc. out of the running.

Pokerstars has tried to acquire William Hill in the past, though they were rebuffed by some of William Hill's largest shareholders, who were worried about Pokerstars' stagnating poker business. So, it's safe to assume that William Hill will still not agree to a deal with Pokerstars.

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Shares of GVC Holdings PLC closed at 912.59 on Friday, giving the firm a total market capitalization of £2.77 billion.

Source: BBC.com - Ladbrokes Coral bought by online rival GVC

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Filed Under: Other Poker News

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