GVC Ladbrokes Coral acquisition goes through as planned
After the High Court gave the ambitious deal the go-ahead last week, the long-awaited £4bn takeover of Ladbrokes Coral by GVC Holdings has been completed.
Once a founding member of the FTSE 100, the Ladbrokes shares were officially delisted from the London-based stock exchange last Thursday. As part of the terms of the new deal, over 270 million ordinary new GVC Holdings shares were created priced at €0.01 each.
Registered in the Isle of Man, GVC Holdings is a global sports betting and gaming conglomerate which has a history of growth through mergers and acquisitions. The group had previously purchased the online gambling casino, bwin, in 2016 and owns stakes in many of the industry’s most recognisable brands including Sportingbet, Gala and Foxy Bingo.
The acquisition of the Ladbrokes Coral Group will see the FTSE 250 member become one of the largest sports betting and gaming groups in Europe.
Current GVC CEO, Kenneth Alexander, gave his thoughts on the completed deal following the release of the company’s Year-End Financial Results for 2017.
The importance of geographic diversification is a key dynamic given the evolving regulatory backdrop. Thus the acquisition of Ladbrokes Coral Group represents an exciting opportunity, bringing together industry-leading online and retail brands. – Kenneth Alexander, CEO, GVC Holdings
Whilst many commentators have labelled the takeover as ‘bold and ambitious’, the excitement and celebration of the deal’s competition will soon turn to fear and uncertainty as many current Ladbrokes employees will fear for their job security. Speculation was rife last month that as many as 1,600 jobs may be at risk if the proposed takeover was to go through.
Former EE Managing Director Noel Hamill will have a heavy role in managing the organisational transition having been appointed as the new Ladbrokes Coral Chief Marketing Officer. Mr Hamill will be responsible for managing the GVC Holding’s newly acquired brands.