The companies renewed the talks that initiated to see if a merger between their business is possible.
UK.- GVC and Ladbrokes Cotai announced to the London Stock Exchange that the talks to merge their business have initiated again. GVC would acquire a majority stake in the rival company, in a deal that could value up to £3.9 billion.
GVC would offer60.90 pence a share in cash and stock and a contingent value right worth as much as 42.80 pence a share, as as statement revealed last week. Morgan Stanley analyst Ed Young said in a note: “We think the combination makes sound strategic sense given the significant synergies of 70 million to 100 million pounds, amounting to 15 percent to 20 percent of pro forma pretax profit.”
“The boards believe that a transaction has the potential to create material shareholder value and that there is a compelling strategic rationale for the possible offer. The enlarged group would be an online-led globally positioned betting and gaming business that would benefit from a multi-brand, multi-channel strategy applied across some of the strongest brands in the sector,” said the statement released by the companies.