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GVC cancels CVRs, avoids £700m Ladbrokes payment

GVC Holdings has confirmed it will not pay contingent value rights (CVRs) to former Ladbrokes shareholders and will therefore avoid an approximate £700m ($893.9m) payout.

GVClogo

As part of its deal to acquire Ladbrokes Coral, completed in March 2018, GVC agreed to pay CVRs to former Ladbrokes shareholders if legislation on new maximum stakes for fixed-odds betting terminals (FOBTs) was not passed before 28 March 2019.

On 14 November 2018, the UK government announced maximum FOBT stakes would drop from £100 to £2 in April 2019.

GVC has subsequently announced its representatives and CVR holders consulted one another and agreed the CVRs, and the loan notes which each CVR holder may have had a right to, hold no value.

The CVRs have been cancelled and are not available for re-issue.

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