In May it was revealed that GVC Holdings had teamed up with Amaya Gamign to make a bid for online betting firm Bwin.Party Digital Entertainment. Today we can report that the bid is for £900 million in cash and stock.
The bid was revealed by the Financial Times and reveals that the deal would be worth 110p per share of Bwin. The offer is being explored by Bwin, but there is competition, chiefly by 888 Holdings who has also put in a healthy bid.
After the offer was revealed shares of Bwin rose 0.4% to 100.6p, which gave the company a value of £823 million.
As of press time neither GVC Holdings or Bwin would comment on the article.
In similar news, GVC Holdings announced a first half 2015 trading update, wherein they announced dividends of €0.14 per share. The company also said that sports wagers were up 19% to €823 million, but margins were lower to 8.9%.
Net Gaming Revenue was also up 14% to €120 million.
Commenting on the results GVC Management said,"The second quarter of 2015 showed a particularly pleasing result with sports wagers averaging Euro 4.5million per day (Q2-2014: Euro 3.9 million), and NGR averaging Euro 661,000 per day (Q2-2014: Euro 602,000). This strength in trading continued into June with NGR higher than that for June 2014 when the World Cup was being played."
Referring to their big for Bwin the company said, "As announced on 15 May 2015, GVC has submitted a proposal with a view to the Group acquiring the entire issued and to be issued share capital of Bwin.Party. This proposal would be jointly financed by GVC and Amaya, Inc and involves new debt facilities and the issue of new shares. Talks with Bwin.Party are continuing, although there can be no certainty that such talks will result in an offer being made. GVC will provide a further update for shareholders as and when appropriate."