GVC Holdings Plc. (GVC.L) Monday confirmed that it has made a proposal to the Board of bwin.party digital entertainment Plc. (BPTY.L) for the acquisition of the entire issued and to be issued share capital of bwin.party.
As per the offer, bwin.party shareholders would be entitled to receive 122.5 pence for each bwin.party share, consisting of up to 25 pence in cash, and the balance of the value in new GVC ordinary shares.
bwin.party also confirmed that it has received a revised indicative proposal to acquire all outstanding and to be issued share capital of bwin.party with an indicative valuation of up to 122.5 pence per bwin.party share, comprised of up to 25 pence in cash and the balance in new GVC shares.
GVC said it would finance the proposal via a combination of the issuance of new GVC shares, to bwin.party shareholders, and a 400 million euros senior secured loan provided by affiliates of Cerberus Capital Management, L.P.
In addition, the company intends to raise about 150 million pounds through an equity placing of new GVC shares for cash to fund restructuring costs, the refinancing of existing bwin.party debt and for additional working capital purposes.
If a transaction were to be completed, the GVC Board believes that cost reductions exceeding 135 million euros per annum would be achieved across the enlarged group by the end of 2017.
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