London-listed gaming operator GVC Holdings has made a 110 pence per share bid to acquire the entire share capital of bwin.party digital entertainment, with the two companies agreeing to work towards finalising the offer.
The board of bwin.party said in an announcement Thursday that it has considered the bid by GVC and believes it can accrue benefits for its shareholders through a combination of the two companies.
bwin.party and GVC said they are committed to working together to resolve a number of transaction related issues so that they can finalise the offer in the coming days.
Kenneth Alexander, Chief Executive of GVC Holdings, commented: "Any offer made by GVC for bwin.party would include part of the consideration in new GVC shares. Based on our experience with the successful Sportingbet acquisition and restructuring, we believe that the potential combination of GVC and bwin.party would result in substantial financial and operating synergies and represent an excellent opportunity for both GVC and bwin.party shareholders."
Both companies stressed that there can be no certainty that an offer will be made, and will provide an update as and when appropriate.
Shares in bwin.party digital entertainment plc (Co. Data) (LSE:BPTY) closed in London Wednesday, prior to the announcement, down 1.49 per cent at 99.10 pence per share. Shares in GVC Holdings plc (Co. Data) (LSE:GVC) closed up 0.90 per cent at 449.00 pence per share.