GVC raises offer for Bwin.Party

GVC Holdings confirmed on Monday that it has raised its offer for Bwin.party Digital Entertainment following the company’s acceptance of a recent bid from 888 Holdings.

Under the new terms of the offer, Bwin shareholders would be entitled to receive 122.5p for each Bwin share, consisting of up to 25p in cash and the balance of the value in new GVC shares.

GVC said it would finance the proposal through a combination of the issuance of new GVC shares to bwin shareholders and a €400m senior secured loan provided by Cerberus Capital Management.

In addition, GVC plans to raise around £150m through an equity placing in order to fund restructuring costs, the refinancing of existing Bwin debt and for additional working capital purposes.

GVC said that if a transaction were to be completed, cost reductions exceeding €135m per year would be achieved across the enlarged group by the end of 2017.

The company said there can be no certainty an offer for Bwin will be made, adding that it reserves the right to amend the cash component of any offer.