Despite rumours last week of a possible merger between GVC Holdings (GVC) and stricken gambling operator Bwin.Party Digital Entertainment (BPTY), 888 (888) appears to have beated its Aim-listed rival to the punch.
The recommended cash-and-share offer from 888 values Bwin shares at 104p each, a 16.4 per cent premium to the group's closing share price just before news broke that it was in takeover talks. The bid values Bwin at nearly £900m, and Bwin shareholders will own approximately 48.9 per cent of the enlarged group. That compares with GVC's mooted offer of 110p a share.
888 believes there are strong synergies between the two businesses, including overlapping offices in Gibraltar, Israel and Romania. Bwin's Foxy Bingo business also runs on 888 technology. Shares in 888 rose 11 per cent after the announcement, while shares in Bwin rose 3 per cent.
