Gvc Share Discussion Threads

[festario] 07/12/2017 13:08

We'll hit £10 this afternoon.

[woodhawk] 07/12/2017 13:05

Nothing goes up in a straight line, Festy. I can always reinvest later.

[festario] 07/12/2017 13:01

Taking profits? Lol.. FTSE 100 basically guarantees us 1500 to 2000p a share in the next 2 years

[woodhawk] 07/12/2017 12:49

I'm in two minds about a Lads takeover. I've taken some profits.

[srpactive] 07/12/2017 12:44

Woodhawk

Do you have a view on this rns?

[sttrader] 07/12/2017 12:42

I hope slippy closed his short in time.

[srpactive] 07/12/2017 12:36

Specials I reckon, the fun beginning, flushing
out who holds.

[noujay] 07/12/2017 12:36

Seems to me that as the news develops and the opinions form pretty much everyone in the city likes this deal.If it propels us into the 100 it's fabulous news and likely a step change in sp

[popper joe] 07/12/2017 12:31

You have just made 70p per share, a further 10p divi would be nice, but I wouldn't squeal if they put the divi on hold during the merger process.

[diviincomesearch] 07/12/2017 12:26

I imagine the divi will be halted while the deal is digested. Probably a reduced yield after when the acquisition costs are taken into account.

GVC used to be throwing off cash left right and centre. Management believe they can put it to better use with acquisitions to create a capital gain instead.

Personally i think there will be a levy on gambling profits at some stage given the government’s cash shortage. An increased U.K. presence isn’t a good thing IMO with the brick and mortar presence and the hangovers of a bygone area (their DB pension scheme for example which is another small millstone around their neck)

Had the rest of the family sell out their remaining holdings today. GVC remains my best ever investment, and I waxed lyrical about the company to everyone I knew over the last 4 and half years.

Good luck to all remaining holders. Hope it all works out in the end.if any man can do it, it’s Kenny.

[coxsmn] 07/12/2017 12:26

FTSE100 here we come.

[blueliner] 07/12/2017 12:09

Where does our divi fit into all this?

[srpactive] 07/12/2017 11:56

TEB

Good post, when the US opens (and I feel the key to
that is when NYC issue licences which I believe
they wish to do sooner rather than later) the profit
gvc will make will make the spends on lads look like
pocket money, dyor.

[trentendboy] 07/12/2017 11:51

People expecting something £1 were always dreaming - imagine shorting LADS for this - never made sense.

The price is reasonable and good that GVC saw sense

[loganair] 07/12/2017 11:27

Alexander, who will lead the new business as Ladbrokes Coral boss Jim Mullen departs, said: “If you want to win in this industry, you have to be diversified, you have to have scale and you have to focus on regulated markets.”

Among a raft of territories, the company will have the top three positions in Europe’s biggest markets — the UK, Germany and Italy — as well as a significant presence in the US and Australia. It is understood GVC could drive around £100 million in savings from the combination.

It proposes to pay an upfront £3.1bn in a mixture of cash and its hot as a scotch bonnet chilli shares (their fancy valuation is a good reason for it to strike now), with up to £800m more on the table dependent on the Government’s FOBT verdict.

That will disappear quicker than a bet gone bad if £2 is the favoured option, but it probably won’t be because that’s what Labour has been campaigning for. A cut to £50 would yield £800m, valuing the deal at £3.9bn. But that probably isn’t going to happen either.

The smart money on £20. At that level the deal would come out at around £3.66bn.

The consensus view is that it's a win win, with the only losers being the workers who are going to get canned when the cost cutting axe starts to fall.

At some point, Mr Alexander, whose success with M&A is really quite startling, is probably going to have to knuckle down and prove he can run a sustainable business and not just a deal engine. But there may still be more fish in the sea for his bankers to locate for him, so that won't happen for a while.

If he gets this through his creation will pose far more challenging questions for rivals such as Paddy Power Betfair, and especially William Hill, which has been showing signs of life, but always seems to be the bridesmaid in these situations.

[srpactive] 07/12/2017 11:26

Yes all positive, now it will flush out all holders
above 1%, that will be fun to read, dyor.

KA has struck gambling gold, look at the ezj price from
2004 to see where we are heading, before they went on the
ftse100, I was in ezj from 126p to 1600p, it even went to 1800p.
Gvc at 2000p within our grasp when all done and dusted, then
the growth.

[loganair] 07/12/2017 11:22

Why the GVC/Ladbrokes Coral merger makes sense:


Shares in both GVC Holdings (LSE: GVC) and Ladbrokes Coral (LSE: LCL) have jumped in early deals after it was announced this morning that GVC had approached its peer proposing yet another deal.

Ladbrokes had previously been in negotiations with GVC during the summer. However, on that occasion, discussions collapsed because of disagreements over the value of the companies.

Now, as the UK government’s ongoing regulatory review continues to cast a shadow over the gambling sector, it would appear that Ladbrokes’ management is keen to get a deal done.

According to today’s press release, Ladbrokes stockholders are likely to be offered cash and shares equal to 160.9p a share, plus an uplift worth up to 42.8p a share depending on the outcome of the UK government’s ongoing regulatory review.

A great deal for all parties:

A merger between Ladbrokes, which has a sizeable high-street presence and GVC, which is predominately online-based, is in the best interest of all parties.

GVC has been building up its online gaming empire for the past decade, but Ladbrokes has struggled in this area and is still heavily reliant on its high street operations. The outlook for these outlets is unclear pending the outcome of the government review of fixed-odds betting terminals. Ladbrokes’ fixed-odds high stakes machines deliver a majority of its retail revenues.

Part of GVC’s offer is conditional on the outcome of the government review. It is offering a fixed price of 160.9p per share plus as much as 42.8p if there’s no change to the regulations. This conditional element is calculated on a sliding scale: if the maximum stake is dropped from £100 to £2, shareholders will receive no extra cash. If the maximum stake is cut to only £50 from £100, shareholders are set to receive the maximum distribution.

By combining, the two would be better placed to withstand any changes brought in by the government. The enlarged entity would be “an online-led, globally-positioned betting and gaming business that would benefit from a multi-brand, multi-channel strategy applied across some of the strongest brands in the sector.”

So the deal will give, Ladbrokes’ investors access to a globally diversified digital gaming business while GVC can expand onto the UK high street.

The next stage of growth:

This merger is just the latest in a string of deals completed by GVC over the past decade. The company has used the cash generated from its leading online operation to expand into other markets with colossal success.

Since 2012 pre-tax profit has exploded from €10m to €210m (forecast for 2017). At the same time, shares in the firm have produced a total annual return for investors of more than 42% per annum including dividends.

Considering the acquisition record, it looks to me as if this is a great deal for all parties and it should enable the firm to continue to generate market-beating returns for investors for many years to come.

[loganair] 07/12/2017 11:11

hill - the same as GVC did for the Bwin take over.

Because GVC's share price is much higher then it was during their last attempt to take over Ladbrokes, this time round they are needing to issue far less shares.

[nurdin] 07/12/2017 11:01

Dilution yes but earnings or net profits likely to rise much more from the combined entity

[t 34] 07/12/2017 10:59

GVC must be aware of all of these threats .

[festario] 07/12/2017 10:54

Dilution then, but still to create a massive entity at a bigger share price. I'm pleased to see the share price up obviously, but I'm deeply concerned about the legacy situation of the staff and shops.

[hillbrown] 07/12/2017 10:25

So where do the shares to be issued to lads shareholders come from and do they dilute our current holdings?

[noujay] 07/12/2017 09:37

From BBC:Neil Wilson, senior market analyst at ETX Capital reacts to the GVC's offer to buy Ladbrokes Coral."As long as GVC was willing to pay the right price, the tie-up has always made sense - the Isle of Man firm has little debt and has the global and fast-growing online presence, Landbrokes Coral (LCL) has the physical footprint, high street name and sports book."The deal values LCL shares at 160.9p, a healthy premium on last night's close and well above any level it has traded at since 2014."In addition there is a 42.8p a share bonus contingent on the outcome of the government's triennial review. Assuming the government tightens the rules somewhat but stays short of imposing a £2 stake limit, it may value LCL at somewhere in excess of 180p, which looks a healthy premium given the regulatory overhang."The fact the deal can go ahead on this basis suggests that the industry is less fearful of a worst case scenario.

[loganair] 07/12/2017 09:24

GVC, would pay cash and shares under the takeover which would see Ladbrokes Coral investors own 46.5% of the combined group.

Ladbrokes Coral would receive 32.7p in cash and 0.141 ordinary GVC shares for each Ladbrokes Coral share.

It would also get a potential further value of up to 42.8p, depending on the outcome of the UK government’s Triennial Review into fixed-odds betting terminals (FOTBS) and its impact on profits.

GVC expects the deal to boost earnings from its first full year after completion, even if the Government decides on the biggest possible curbs on gaming machines.

Greg Johnson, an analyst at Shore Capital, said: "We see significant merits in the tie up notably from cost synergies, a more diverse geographic footprint and reduces the risk around UK regulation and machines in particular.

"Against this it does bring in some geographic risk in GVC notably around Germany following the exit from Turkey, whilst the cash elements, we estimate worth £600m and £800m (max for the triennial review element), are more the comfortable from the existing balance sheet and future cash generation."

Under UK regulation, GVC is required, by not later than 5pm on 4 January next year, to either announces its firm intention to make an offer for Ladbrokes Coral or to announce that it does not intend to do so.

[t 34] 07/12/2017 09:22

What about our divi ??? The main feature of gvc for investing in ???