Ladbrokes Coral in talks over takeover by GVC

Gambling giant Ladbrokes Coral is in "detailed" talks over a takeover by online competing GVC over an bet9ja's welcome offer that might value the group at up to ₤ 3.9 bn.

Under the proposals, GVC - which owns the Bwin and Sportingbet brands - would hold 53.5% of the yohaig code combined group.

The maximum price GVC will pay will depend on the outcome of the federal government's review of gaming devices.

Ladbrokes Coral shares leapt 23% on news of the talks, while GVC's were up by 4%.

The Department of Culture, Media and Sport has said it will top the size of stakes gamblers can make on fixed-odds wagering terminals, amid concerns they may harm susceptible people.

GVC and Ladbrokes Coral said that the yohaig code evaluation could impact on the success of Ladbrokes Coral's UK organization.

Under the proposed takeover offer, GVC will pay 160.9 p for each Ladbrokes Coral share, which would value the company at ₤ 3.1 bn.

However, if the result of the federal government's evaluation of video gaming terminals is favourable to the yohaig code gambling industry, and enforces a greater limitation on fixed odds bets, then GVC will pay Ladbrokes Coral shareholders a so-called "contingent worth right" (CVR) of up to 42.8 p per share. When added to the original payment, this promotion code might value the company at up to ₤ 3.9 bn.

The takeover of Ladbrokes Coral might go ahead before the federal government reveals the outcome of its evaluation. Following the result, GVC would then pay the CVR to Ladbrokes Coral shareholders.

GVC and Ladbrokes Coral have actually previously held talks about a takeover, but they broke down.

"GVC got fortunate at the yohaig code third attempt and Ladbrokes Coral shareholders can count their earnings," said Neil Wilson, senior market analyst at ETX Capital.

"Whilst this promotion code deal was constantly likely, most had believed GVC would wait up until the government's triennial evaluation of fixed odds betting terminals was completed before it would occur."

The "tie-up has always made good sense", he included.

Isle of Man-based GVC "has little debt and has the international and fast-growing online existence, Ladbrokes Coral has the physical footprint, High Street name and sports book".

Under takeover rules GVC now has up until 4 January to choose whether to make a firm deal for Ladbrokes Coral or to withdraw.

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