The board of GVC Holdings has today announced that it has sold its Turkish business unit ‘Headlong Limited’ (and associated subsidiaries) to Malta-based technology group Ropso Limited.
The FTSE gambling group undertakes its disposal of Headlong assets for a total consideration of €150 million (£132 million).
Updating the market, GVC governance expects to conclude its Turkish asset sale by the end of December 2017. Following the completion of sale, GVC will operate Headlong’s business operations for a transitional period which it states will not ‘exceed a six-month’ period.
For its full-year 2016 performance, Headlong and associated businesses generated approximately €35m of Clean EBITDA. In its market update, GVC further states that Headlong and associated businesses had gross assets of €21m as at 31 December 2016.
GVC details that its decision to sell its Turkish enterprise follows a strategic board review, in which governance has decided to concentrate growth within regulated markets. GVC Holdings Chief Executive Kenneth Alexander (CEO) commented on the update
“As the Group evolves, our focus is increasingly on regulated markets and markets where we believe there is a realistic path to regulation. Today’s disposal is consistent with this strategy and enhances GVC’s position as a leading operator in a rapidly developing industry.”
Reacting to GVC’s Turkish disposal, sector analysts have detailed that the sale may be needed in order to execute GVC ‘well documented’ takeover plan of FTSE competitor Ladbrokes Coral Plc.
This September, UK business news sources reported that GVC governance would attempt its third multi-billion takeover bid for Ladbrokes-Coral. Deal stakeholders were reported to be waiting for the outcome of the UK governments October industry review on FOBTs wagering and advertising standards.