GVC Holdings Very Close to Closing Bwin.party Takeover Deal
Earlier this week, Bloomberg.com reported that GVC had teamed up with Amaya Gaming (owners of PokerStars) to offer Bwin.party 906.5 million-pound ($1.4 billion USD) for the whole company. That comes out to 110 pence per share and is an 11% boost over the the stock’s current trading price.
GVC Holdings CEO, Kenneth Alexander broke out his best businessman man buzzwords when describing the deal telling Bloomberg News:
Based on our experience with the successful Sportingbet acquisition and restructuring, we believe that the potential combination of GVC and bwin.party would result in substantial financial and operating synergies and represent an excellent opportunity for both GVC and bwin.party shareholders.
Part of that value for shareholders would come from the fact that GVC wouldn’t be ponying up the entire $1.4 billion. They’ll be getting some financial assistance from Quebec-based Amaya Gaming. Amaya is no stranger to massive deals, last year they put up billions of their own to acquire PokerStars.
If the deal goes through, GVC would maintain control of Bwin.party’s sports betting business, while Amaya would take control of the casino side of the business.
All parties are in agreement that Bwin.party is in pretty good financial shape. In an announcement to the press, the company said that Bwin.party’s three month financial performance was, “in line with expectations.”
This is, by no means, a done deal. Bwin.party is definitely entertaining offers from other suitors though Alexander says he’d be, “staggered,” if they deal didn’t go through.