GVC Holdings shows interest in Bwin.Party
July 14, 2015
The head of GVC Holdings is interested in a takeover of the Bwin.Party provider. He claims that the takeover of the flagging online gambling company will be a great chance for shareholders to maximize the value. Bwin, which is for sale since November, confirmed that it had received a £ 908 cash offer for the shares acquisition of GVC and they also confirmed that negotiations for the completion of the offer is going to happen in the coming days. The bid from GVC is supported by Amaya, the Canadian giant behind PokerStars. The online casino group 888 Holdings also confirmed that it had made a cash-and-share bid for Bwin and it is understood that there is a dialogue between the two companies, despite the GVC proposal.
But Kenneth Alexander, GVC-chief said that his company is probably much more valuable for shareholders from Bwin than from 888, as his company was successful in acquisitions, especially the last deal, when Sportingbet was purchased in 2013. “I think we can create a lot more value than 888,” he said. The Sportingbet shareholders have for instance benefited disproportionately from the GVC takeover. GVC is planning to merge its sporting bet operations with Bwin. Amaya on the other hand is interested in the Bwin Poker business. “The Bwin sports betting brand is by far the most attractive investment and that is something in which we are especially interested in,” Alexander said. He believes that by combining two companies they will generate £ 80 million in cost synergies, as there is overlap in a number of areas, including trading systems. Mr. Alexander is therefore confident that a deal is going to happen, especially because all of them already agreed on the essential parts of the agreement.