The governance of GVC Holdings has today released its ‘combined prospectus’ relating to its £4 billion takeover deal of Ladbrokes Coral Plc.
The deal which enters its final stages has been approved by Ladbrokes Coral governance and is set to be reviewed by the UK Competitions & Markets Authority (CMA), which this week set a 21 February deadline for industry comment.
In its investor presentation, GVC governance outlines a ‘highly compelling strategic rationale’ for the enlarged enterprise, which seeks to become the dominant FTSE gambling enterprise.
Should the deal be concluded, GVC will move to create a technology leading multi-channel/multi-market gambling group, capable of competing in any jurisdiction through its combined scale and established brands.
“The enlarged group will be a fast-growing, diversified, highly profitable, international online and retail sports betting led gaming company with >90% of NGR coming from locally regulated/ taxed markets” details the GVC prospectus.
Seeking to deliver fast growth and profits for its investors, GVC states that the new enterprise will set-out to implement the following key enlargement initiatives;
- Diversified strategy focusing on scale within regulated markets
- Establish leading UK operations with a complementary international revenue base.
- Creation of a true global gaming & betting enterprise
- Developing market leading scalable technology systems
- Clear group focus on sports betting
- Strong emphasis on combined synergy creations
Further deal advantages, see GVC governance highlight the leadership combination of both companies, which have proven executive teams with experience in corporate mergers.
Throughout the prospectus, GVC highlights the importance of technology ownership, which the firm believes will help the new FTSE enterprise achieve effective multi-channel distribution combined with ‘highly flexible and highly scalable technology across all verticals’.
The combined enterprises of GVC and Ladbrokes Coral will service a total of 15 brands, with an established presence in the UK, Italy, Spain, Belgium, Germany and Australia. Furthermore, the new FTSE gambling enterprise will have a strategical advantage should the US betting market be regulated.
In its deal summary, GVC governance urges investors to take ‘the initiative now’, in order to secure ‘strategic and synergy benefits of the combination to be realised in the short term’.
As the leading party in the transaction, GVC believes that it has secured stakeholders a flexible deal structure which allows for range of triennial scenarios, combined with favourable financing conditions.