GVC Holdings Tries Again for bwin.party

bwin-party-logoJust a few days ago, it seemed as though 888 Holdings was set to acquire bwin.party for $1.4 billion. GVC Holdings Plc had been working with Amaya Gaming to try and acquire the company as well, but their offer was not accepted. It was believed that GVC was not chosen due to their involvement with Amaya Gaming, the parent company of PokerStars, even though the GVC offer was much higher. Now, we have learned that GVC has sent in a bid for bwin.party worth $1.55 billion, and are doing so without the financial backing of Amaya Gaming.

Information was released by GVC earlier this week which stated that the GVC directors have noted the press speculation as of late concerning a potential proposal by the company to try and acquire bwin.party. The board of GVC has now confirmed that a proposal has been made to the bwin.party Board for the acquisition of the entire issued share capital as well as the to-be-issued share capital of bwin.party.

To be able to finance their new offer, GVC has obtained a senior secured loan of $440 million from Cerberus Capital Management. GVC also plans to raise £150 million with an equity placing of the new GVC shares for cash. This would be used to fund any restructuring costs, refinancing of debt of the existing bwin.party as well as cash for additional working capital purposes.

Reportedly, GVC was considering a higher bid from as far back as last week, since the company announced they were considering their options. However, it was uncertain as to if the company was going to make an offer or not. Once GVC announced the new bid, the international markets reacted in a positive manner. Bwin.party Group rose 3.1 percent after the trading session opened on Monday.

With 888 Holdings possibly losing out on the bwin.party deal, the company had a decrease in shares of 3.7 percent. GVC stocks remained basically the same with only a decline of 0.8 percent.

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