Online gaming group GVC Holdings has made an improved proposal to acquire the entire issued and to be issued share capital of operator BwinParty, valuing the company at up to 122.5p a share.
The proposal is worth an approximate £1bn, and follows a proposal worth 110p a share that was confirmed by GVC earlier this month.
It was later announced that the boards of BwinParty and fellow operator 888 Holdings had reached an agreement on the terms of a recommended offer for BwinParty of 104.09p a share, which was announced earlier this month.
GVC responded by saying that it was “considering the company’s options”, before the announcement of the new proposal, which would be financed by a combination of the issuance of new GVC shares to BwinParty shareholders and a €400m senior secured loan provided by affiliates of private investment firm Cerberus Capital Management.
GVC said that there can be no certainty that it will make an offer for BwinParty, and that if the transaction were to be completed, the GVC board believes it would achieve cost reductions exceeding €135m per annum.
It was first announced by GVC that it had submitted a proposal to acquire BwinParty in May, and it was confirmed in a later announcement that the proposal would be jointly financed by provider Amaya Gaming.