Ladbrokes Coral talks over takeover by Bwin owner GVC

Ladbrokes Coral talks over takeover by Bwin owner GVC

Ladbrokes branch in Dublin, Ireland.

Addleshaws is representing existing client GVC on the deal, led by corporate partner Nick Pearey, while Ashurst is advising Ladbrokes on another significant transaction, led by corporate partners Simon Beddow, Tom Mercer and James Fletcher.

The proposed takeover would give it access to the Ladbrokes, Coral and Gala brands and the combined company would compete with William Hill and Paddy Power Betfair.

The news follows a wave of consolidation in the sector, which is going through a hard shift from high street betting shops to online gambling.

"We've come along in a fairly short period of time, we're very proud of what we've achieved", Alexander said.

Ladbrokes had previously been in negotiations with GVC during the summer.

Ladbrokes Coral has announced it is having "detailed discussions" about a potential takeover by rival GVC Holdings in a deal that could be worth up to £3.9bn.

FILE PHOTO: A branch of Ladbrokes is seen in central London, Britain, May 17, 2016.

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"Whilst this deal was always likely, most had thought GVC would wait until the government's triennial review of fixed odds betting terminals was finished before it would happen".

Part of GVC's offer is conditional on the outcome of the government review. It started a 12-week consultation to consider cutting the stake to between 50 pounds and 2 pounds, from 100 pounds now.

Based on a closing GVC price overnight of 911.5p and 135.65p for Ladbrokes, the offer would values Ladbrokes Coral at £3.1bn or 160.9p per share, with the CVR of up to 42.8p per share potentially taking the total value up to £3.9bn. GVC shareholders would be entitled to the rest. A takeover of Ladbrokes by GVC would create one of the largest gambling companies in the world.

The talks follow two previous attempts at a deal between the pair.

"This triennial review has run and run and run and with the political climate in the United Kingdom who knows how much longer it may well run for?" he said.

As revealed by GVC Holdings in a statement published on the gambling operator's website, the possible offer is expected to be structured as a scheme of arrangement in accordance to which GVC Holdings would acquire the entire capital of Ladbrokes Coral. The latter would fall as online grows, he added.

GVC said it expects the deal would results in "material synergies which will create value for both sets of shareholders" and that it will increase earnings per share by a double-digit rate from the first full year post-completion.

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