ladbrokes-coral-in-talks-over-takeover-by-gvc

Ladbrokes Coral in talks over takeover by GVC
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Gambling giant Ladbrokes Coral remains in "in-depth" talks over a takeover by online rival GVC over a deal that could value the group at approximately ₤ 3.9 bn.

Under the yohaig code proposals, GVC - which owns the Bwin and Sportingbet brand names - would hold 53.5% of the combined group.
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The maximum rate GVC will pay will depend on the outcome of the federal government's evaluation of video gaming machines.

Ladbrokes Coral shares jumped 23% on news of the talks, while GVC's were up by 4%.
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The Department of Culture, Media and Sport has stated it will cap the size of can make on fixed-odds wagering terminals, in the middle of issues they might damage susceptible individuals.
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GVC and Ladbrokes Coral stated that the evaluation could influence on the success of Ladbrokes Coral's UK service.

Under the proposed takeover deal, GVC will pay 160.9 p for each Ladbrokes Coral share, which would value the business at ₤ 3.1 bn.

However, if the outcome of the government's evaluation of gaming terminals is beneficial to the gambling industry, and imposes a greater limit on fixed chances bets, then GVC will pay Ladbrokes Coral shareholders a so-called "contingent worth right" (CVR) of as much as 42.8 p per share. When contributed to the original payment, this might value the company at approximately ₤ 3.9 bn.
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The takeover of Ladbrokes Coral might proceed before the government announces the result of its review. Following the outcome, GVC would then pay the yohaig code CVR to Ladbrokes Coral shareholders.
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GVC and Ladbrokes Coral have formerly held talks about a takeover, but they broke down.

"GVC got lucky at the 3rd effort and Ladbrokes Coral shareholders can count their jackpots," stated Neil Wilson, senior market analyst at ETX Capital.

"Whilst this bet9ja's welcome offer was always likely, the majority of had thought GVC would wait till the federal government's triennial review of fixed chances betting terminals was finished before it would take place."
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The "tie-up has always made good sense", he added.
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Isle of Man-based GVC "has little financial obligation and has the international and fast-growing online existence, Ladbrokes Coral has the physical footprint, High Street name and sports book".

Under takeover rules GVC now has until 4 January to decide whether to make a firm deal for Ladbrokes Coral or to withdraw.

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