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Ladbrokes Coral bought by online rival GVC | Ladbrokes Coral bought by online rival GVC |
(about 2 hours later) | |
Gambling giant Ladbrokes Coral has agreed to be bought by online rival GVC in a deal worth up to £4bn. | Gambling giant Ladbrokes Coral has agreed to be bought by online rival GVC in a deal worth up to £4bn. |
Under the deal, shareholders in GVC - which owns the Bwin, Sportingbet and Foxy Bingo brands - will hold 53.5% of the combined group. | Under the deal, shareholders in GVC - which owns the Bwin, Sportingbet and Foxy Bingo brands - will hold 53.5% of the combined group. |
Ladbrokes Coral became the UK's biggest High Street bookmaker following last year's merger of Ladbrokes and Coral. | Ladbrokes Coral became the UK's biggest High Street bookmaker following last year's merger of Ladbrokes and Coral. |
The company has about 3,500 High Street outlets and employs more than 25,000 staff. | |
GVC - which has 2,800 employees - has grown rapidly in recent years through a number of takeovers, most notably that of Bwin.party in February last year. | |
Terminal blues | Terminal blues |
The final worth of the deal is dependent on the government's review of gaming machines known as fixed-odds betting terminals (FOBTs). | The final worth of the deal is dependent on the government's review of gaming machines known as fixed-odds betting terminals (FOBTs). |
The Department of Culture, Media and Sport (DCMS) has said it will cap the size of stakes gamblers can make on FOBTs, amid concerns they may harm vulnerable people. | The Department of Culture, Media and Sport (DCMS) has said it will cap the size of stakes gamblers can make on FOBTs, amid concerns they may harm vulnerable people. |
Ministers have proposed that bets on the machines should be cut from a maximum of £100 a spin to somewhere between £2 and £50. | Ministers have proposed that bets on the machines should be cut from a maximum of £100 a spin to somewhere between £2 and £50. |
GVC and Ladbrokes Coral have said that the review could hit the profitability of Ladbrokes Coral's UK business. | GVC and Ladbrokes Coral have said that the review could hit the profitability of Ladbrokes Coral's UK business. |
Ladbrokes Coral brands: | Ladbrokes Coral brands: |
GVC brands: | GVC brands: |
Under the terms of the deal, for each share that Ladbrokes Coral shareholders own, they will get 32.7p in cash and 0.141 ordinary GVC shares, plus a "contingent value right" worth up to 42.8p. | Under the terms of the deal, for each share that Ladbrokes Coral shareholders own, they will get 32.7p in cash and 0.141 ordinary GVC shares, plus a "contingent value right" worth up to 42.8p. |
The size of this contingent entitlement will be decided by the outcome of the DCMS review. | The size of this contingent entitlement will be decided by the outcome of the DCMS review. |
GVC chief executive Kenneth Alexander described the takeover deal as "a truly exciting prospect". | |
Ladbrokes Coral chairman John Kelly said the tie-up with GVC would "improve the customer experience, drive faster online growth and build a more diverse and extensive international portfolio of businesses". |