The £3.6bn takeover of UK bookmaker Ladbrokes Coral by online gambling group GVC has hit a snag today as talks between the two companies broke down.
This is the second time that the firm have attempted to buy Ladbrokes Coral after holding takeover discussions in December 2016, which broke down due to a disagreement regarding the valuation of the company. The current talks between the two companies are now confirmed as being no longer active.
According to the Financial Times newspaper, GVC’s proposal valued Ladbrokes Coral at roughly 140p a share or £2.7bn with a potential uplift of 50p per share based on the outcome of the UK Government’s review into the gambling sector, due to be published later this year.
A key part of this review is a rumoured crackdown on the highly controversial fixed odds betting terminals, which are a significant part of the current makeup of Ladbrokes Coral betting shops throughout the UK.
In its latest financial filing of 2017, Isle of Man-headquartered GVC Holdings revealed growth in net gaming revenue (NGR) of 10% for the first half of 2017, climbing to €484.8m through the positive momentum of its sports and casino brands.
GVC have a strong track record of high profile corporate acquisitions, beating rival firm 888 Holdings to the £1.1bn purchase of fellow online gambling company Bwin.party in 2015.