Gvc Share Discussion Threads

[shayadfn] 23/12/2017 09:48

Hello people

I did say I would add in December, however, reading some of the stuff above is concerning. I have been distracted in dealing in my mining stocks, I did take some profits last month, now looking to see what the state of play with GVC.

[nurdin] 23/12/2017 08:56

So what are GVC getting for the business? Not at all clear to me if all they are losing is the valuation gap.

[coxsmn] 23/12/2017 08:32

Not necessarily. Might have been Lads weren't happy with the arrangement hence why it was dropped to do the deal.Its all elementary anyway, we are acquiring Ladbrokes which is a huge achievement and is the next transformational step for gvc.

[cheshiremoggie] 23/12/2017 00:38

Mylands - exactly. (Or near enough I'm sure). The obvious reason is that GVC had to distance itself from turkey either for lads or the regulators etc. The earnout is seen to be still connected with the Turkish business so it had to go. That's the obvious explanation. Of course you can always invent a lovely conspiracy theory. CM

[mylands] 22/12/2017 19:45

Having seen the various theories why this change to the deal to sell the Turkish business has come about, I will add a different possibility.

The deal with LADS was originally scuppered because they didn't want to be associated with a large unregulated business within GVC. So, months later the deal was resurrected when GVC announced it was offloading it to Ropso but with an earnout clause. I think LADS have had second thoughts and realise that while GVC is receiving payments from Ropso it is in effect operating in an unregulated territory and have said this cannot continue.

[nurdin] 22/12/2017 12:48

No I suspect Ropso realised they held the upper hand and forced GVC to remove the earn out clause ,just my guess.

[festario] 22/12/2017 12:47

I think that is a material sum of revenue which has been suddenly cut off.Obviously it's been done to facilitate the LADS deal, but it bears questioning... I'd submit the question to Investor Relations myself if I had the time.Maybe Kenny has had a 'Scrooge type' epiphany, and he's giving away businesses, and over paying for that basket case, Ladbrokes.Somehow I doubt that.

[noujay] 22/12/2017 12:34

Yes but the arrangement has changed per this in today's document. The whole thing was earn out based so with none of that seems to me that they've either been paid a lump sum early by Headlong, done a separate deal to sell the earn out on (not announced and it surely would be material so seems unlikely), or simply cut it off which seems ridiculous unless there's something fishy there which they have to distance themselves from (which seems more plausible).Here's the text from today:On 19 December 2017, GVC Investments Limited completed the sale of Headlong Limited (a GVC group company comprising GVC Group's Turkish facing business) to Ropso Malta Limited for consideration in the form of a performance related earn-out, payable monthly. On 21 December 2017, GVC Investments Limited notified Ropso Malta Limited that it was terminating and waiving all rights to this earn-out consideration.

[nurdin] 22/12/2017 12:28

Details here:



Seems to me they have dispensed with the earn out clause.

[noujay] 22/12/2017 12:21

I'd like to think not Trent but the deal was for an ongoing consideration up to £150m. Unless they've laid that deal off to somebody else in exchange for a smaller upfront payment it's a bit confusing as to why they'd cut it off.

[trentendboy] 22/12/2017 12:03

Was not given away for free

[red_shed2000] 22/12/2017 11:53

Anybody any comment on my post 28373?

[powerpack] 22/12/2017 10:48

In for a few more at 911

[noujay] 22/12/2017 10:38

Glad to see the dividend policy is clear. Not long for the next one and an update in a couple of weeks too. Gla

[nurdin] 22/12/2017 10:24

Not sure why we are going down...perhaps sell the news syndrome?

[nurdin] 22/12/2017 09:50

Hard to work out how many additional shares will be issued by GVC...

[speedsgh] 22/12/2017 09:44

Board and management
The Enlarged Group board will comprise Lee Feldman as Chairman [current GVC Non-Executive Chairman], Kenneth Alexander as Chief Executive [current GVC CEO], Paul Bowtell as Chief Financial Officer [current Ladbrokes Coral CFO] and non-executive directors who are expected to be drawn from the current GVC Board.

[speedsgh] 22/12/2017 09:40

GVC to pay a final dividend in respect of FY17 of no more than €0.175. If deal completes prior to announcement of the final div, payment will be brought forward in the form of a special dividend...

RECOMMENDED OFFER FOR LADBROKES CORAL GROUP PLC -

16. Dividends and dividend policy
The Boards of GVC and Ladbrokes Coral have agreed that their respective shareholders should each be paid a dividend for the year ending 31 December 2017.

In order to ensure that shareholders receive this benefit, if the Effective Date occurs before the announcement of a final dividend by GVC and/or Ladbrokes Coral for the year ending 31 December 2017, GVC and/or Ladbrokes Coral each intends to declare a special interim dividend prior to the Effective Date in an amount equal to whatever amount the final dividend for the year ending 31 December 2017 would have been.

GVC Permitted Dividends
Under the terms of the Acquisition and save as set out below, prior to the Effective Date GVC Shareholders will be entitled to receive either:
· a final dividend announced, declared or paid by GVC for the period ending 31 December 2017; or
· a special interim dividend announced, declared or paid by GVC in an amount equal to the anticipated final dividend for the period ending 31 December 2017,
provided that any such dividend shall not exceed €0.175 per GVC Share...

Dividend policy
Following the Effective Date and subject to the approval of the GVC Board, GVC intends to continue with a progressive dividend policy consistent with its post-Acquisition growth strategy, which balances returns to shareholders with the need to retain sufficient funds to drive growth and reduce leverage.

[fizzypop] 22/12/2017 09:31

Merry Xmas and a happy New Year to everyone - 2018 should be another good year here.

[red_shed2000] 22/12/2017 08:30

Anybody any idea why they have given the Turkish business away for free or am I reading that wrong?

[davr0s] 22/12/2017 08:30

Well I hope it's not "all in the price" on a meaningful timescale as we aren't any higher than we were pre-deal

[trentendboy] 22/12/2017 08:18

Deal agreed.Mostly in the price but a real coup.GVC is now the giant. Could not have predicted that a few years agoOr perhaps we did...

[trentendboy] 22/12/2017 00:27

Interesting - I think they need to bid soon and get it out the way.

Any review is trivial over a 20 year horizon