GVC Holdings, not 888 to take over Bwin.Party

A month and a half ago the boards of Bwin.Party and 888 Holdings announced to the market that an agreement had been reached under which 888 would acquire Bwin.Party for just under £900 million.

Deal done so we all thought.

Since that announcement GVC Holdings, losing bidders in the above deal, maintained that they had not given up the fight to purchase Bwin.Party. Now it seems their fight was not in vain.

Bwin.Party’s board have today announced that they will be recommending shareholders approve an offer from GVC above the previously agreed 888 deal.

Why the change of tune? GVC are prepared to pay considerably more basically… around £1.12 billion in cash and shares, giving Bwin.Party shareholders around 129.64 pence per share. This compares with about 104.9p per share under the original 888 deal (888 did submit a revised bid earlier this week which was clearly not enough).

Today’s news release included the following statement from Bwin.Party chairman Philip Yea:

“In recommending the offer from GVC, the board has taken into account many factors including, but not limited to, the headline value per share and the consideration being offered, the level, timing and deliverability of the financial synergies to be generated and the enlarged group’s growth strategy in an increasingly competitive marketplace”