Ladbrokes Coral: stock up 24%, with GVC merger close.
(CercleFinance.com) - The share of British betting and gaming operator Ladbrokes Coral Group is soaring 24% this morning on the London Stock Exchange after revealing talks to merge with its competitor GVC Holdings, which owns the Bwin brand.
This deal could total over four billion euros.
Ladbrokes has received a non-binding bid from GVC for all of its capital. For each Ladbrokes Coral share, GVC offers 32.7 pence in cash, 0.141 GVC shares, and a Guaranteed Value Certificate (GVC) that has a potential value of up to 42.8 pence per security. On the whole, and based on prices of 6 December, a price of 160.9 pence per Ladbrokes share, corresponding to 3.1 billion to 3.9 billion pounds for the entire group, depending on the value of the CVG (between 3.5 billion and 4.2 billion euros).
On this basis, GVC shareholders would own 53.5% of the new group's capital, and Ladbrokes shareholders would have the balance.
The final agreement is set to be signed "in the coming weeks" and "significant" synergies are expected.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
This deal could total over four billion euros.
Ladbrokes has received a non-binding bid from GVC for all of its capital. For each Ladbrokes Coral share, GVC offers 32.7 pence in cash, 0.141 GVC shares, and a Guaranteed Value Certificate (GVC) that has a potential value of up to 42.8 pence per security. On the whole, and based on prices of 6 December, a price of 160.9 pence per Ladbrokes share, corresponding to 3.1 billion to 3.9 billion pounds for the entire group, depending on the value of the CVG (between 3.5 billion and 4.2 billion euros).
On this basis, GVC shareholders would own 53.5% of the new group's capital, and Ladbrokes shareholders would have the balance.
The final agreement is set to be signed "in the coming weeks" and "significant" synergies are expected.
Copyright (c) 2017 CercleFinance.com. All rights reserved.