GVC to return if outbid for Bwin.party by 888, 888 has other alternatives if bid fails
GVC Holdings CEO Kenny Alexander said he will “come back” if rival 888 Holdings makes a “greater” bid for Bwin.party digital entertainment, The Daily Telegraph reported. Alexander, speaking on Friday, 28 August, said he is confident that GVC’s offer for Bwin will win.
Bwin, a listed Gibraltar-based online gambling website operator, recommended 888 Holdings’ GBP 900m (EUR 1.23bn) cash plus shares offer in July. However, Bwin has in recent weeks held discussions with GVC to resolve issues with the Isle of Man-based online gambling company’s improved offer, which values Bwin at GBP 1.03bn, the item noted.
Bwin this week asked GVC to submit its best bid and said it will give an update on Tuesday, 1 September.
GVC’s offer comprises 25p cash plus 0.231 GVC shares per Bwin share. GVC claims that its proposal includes more synergies than the 888 offer, which comprises 39.5p cash plus 0.44 888 shares.
888 Holdings’ executive chairman Brian Mattingley said that the bigger cash component highlights the strength of his company’s offer for Bwin. Mattingley also defended the minimum USD 70m (EUR 62.5m) synergies outlined in 888’s bid, arguing that the synergies were less than the EUR 135m proposed by GVC because 888’s offer involves synergies, rather than cost savings. It is impossible to take out EUR 135m of costs and not destroy value, Mattingley added. The executive chairman would not say whether 888’s existing bid was final, saying that the company would review the offer if it failed.
A Financial Times report quoted Mattingley, who said that even if 888 fails in its bid to acquire Bwin, the company has other other potential tactical and strategic acquisitions in its sight.
As previously reported, GVC has backing from Cerberus Capital Management for its bid for Bwin.
Bwin.party digital entertainment’s share price closed 1.1p up at 116.4p in London on Friday, giving the company a market capitalisation of GBP 959m.
Daily Telegraph, Financial Times