Bwin deal not in doubt, says GVC
Operator says there is no danger of deal collapsing despite recent reports suggesting acquisition could yet fall through
GVC Holdings this morning moved to quash growing speculation its £1bn takeover of bwin.party could be about to hit the buffers, telling eGaming Review “nothing has changed” despite a recent fall in the operator’s share price.
UK newspaper The Independent last week suggested a drop in GVC’s shares had cast fresh doubt over the majority paper deal, with the fall effectively reducing its valuation of bwin.party from 130p per share to 116p – the same offer lodged by unsuccessful bidder 888.
From a high of 453p at the start of the month, the London AIM-listed firm’s share price had tumbled to as low as 395p on 10 September but has since risen to a mark of around 407p today.
The fall is thought to be linked to a potential suspension of dividends from GVC which has seen a selling of stock by some investors, while some analysts have noted that an initial share price fall was likely to occur for which ever firm had secured bwin.party.
GVC was announced as the successful bidder on 4 September and while its offer of 130p was bigger than 888’s, bwin.party said GVC had won the day for its promise of greater cost synergies as well as its sportsbook track record.
“GVC was chosen as preferred bidder due to the long-term value an enlarged operator will bring to shareholders,” a GVC spokesperson told eGR this morning. “Nothing has changed, and we are not concerned with short-term market wide volatility.”
The news comes as corporate finance group Mergermarket this morning reported GVC chief executive Kenneth Alexander had lined-up meetings with sell-side analysts ahead of the publication of the merger prospectus, which is expected in November.
However, GVC insisted that this was normal protocol and not an attempt talk-up the deal and firm-up the GVC share price.