London-listed online gaming operator 888 Holdings has made a bid to acquire the entire share capital of rival bwin.party digital entertainment.
The company said Monday that the board of directors believes that there is “significant industrial logic in a combination of 888 and bwin.party”.
888 has bid for the entire issued and to be issued share capital of bwin.party, payable in cash and 888 shares.
The proposed transaction would require the approval of 888 shareholders, with the company noting that shareholders representing approximately 59 per cent of its share capital have irrevocably agreed to vote in favour of the transaction.
888 added that there can be no certainty that the transaction will be completed, and that it would provide a further update in due course.
The bid follows Friday's announcement by GVC Holdings that it had submitted a bid to acquire the entire share capital of bwin.party.
GVC said that if the proposed transaction were to complete, it would be treated as a reverse takeover due to the size of bwin.party relative to the company, which currently operates the Sportingbet (excluding Australia), Casino Club and Betboo brands.
At close on Friday, 888’s market valuation was approximately £605m, compared to bwin.party’s valuation of £819m. GVC’s market valuation is approximately £281m.
In response to the bids, bwin.party said Monday that its Board and advisers are conducting a detailed review of the proposals received to-date and will make a further announcement in due course, adding that there can be no certainty that these proposals will result in a transaction being completed.
Shares in bwin.party digital entertainment plc (Co. Data) (LSE:BPTY) closed in London Friday up 11.24 per cent at 99.45 pence per share, while shares in 888 Holdings plc (Co. Data) (LSE:888) closed at 169.75 pence per share.