Hills-GVC to seal 65p-a-share Sportingbet takeover in December
Joint bidders William Hill and GVC Holdings will seal improved 65p a share takeover offer, source close to negotiationssays - Paul Roberts, director of business development and B2B to leave.
Joint Sportingbet bidders William Hill and GVC Holdings will seal an improved 65p a share takeover offer for the UK listed operator at the beginning of December, a source close to the negotiations has told eGaming Review.
Earlier today Sportingbet confirmed it had granted both bidders a further extension until 5pm on 4 December to lodge a firm “put up or shut up” offer for the business. In accordance with the Takeover Panel rules this could again be extended, however eGR understands William Hill and GVC are likely to complete the deal in the coming weeks as the remaining details over how the deal is structured are pieced together.
An improved offer of 61.1p a share is currently on the table. This comprises 48.9p in cash, a 1.1p dividend declared by Sportingbet and the rest in GVC paper, valuing the group at £408m, or £530m including Sportingbet’s convertible bonds and share options.
Hills is bidding to acquire Sportingbet’s Australian business, its newly regulated Spanish business where it enjoys considerable market share of in sports betting as well as its UK customer base but not its brands here.
GVC is vying for Sportingbet’s grey markets including its share of South America where it currently operators its own popular Betboo brand as well as Greece, Cyprus, Serbia, Bulgaria, Belgium, Holland, Portugal and Germany. It is likely to fund the majority of the deal in “paper” or shares.
eGR has learned that the 888 also reviewed the business for a second time in the last few weeks but that it has now ruled out making a counter bid for Sportingbet instead content to work with its existing sports betting partner Blue Square.
Speaking to eGR late last night 888 CEO Brian Mattingley described Sportingbet as “an asset with a lot of potential particularly when you don’t have a competitive sportsbook” but that 888 has “too many other things to work on” and that his appraisal of the business had ended “some time ago”. A UK national newspaper last weekend also tipped Paddy Power to lodge a late bid for Sportingbet’s Australian arm and increase its market share there following its 2011 Sportsbet acquisition, however no further details are currently known about this.
The last year has seen Sportingbet undergo a company-wide personnel restructure programme with the majority of its consultants no longer working for the business or having been served notice letters in the last few days.
A number of its senior staff are considering leaving following two years of turbulence, a number of failed takeover bids including Ladbrokes and 888 as well as the current takeover situation.
The latest executive to confirm his departure is Paul Roberts, current director of business development and B2B who has been with the company since November 2006 as its director of products and CIO.
Although still currently with the business eGR understands he has informed the board he is to leave and will join supermarket chain Tesco in a senior online role in the near future.