04 Apr 2018

Investec advises on £7.4bn merger between GVC and Ladbrokes Coral

Investec has helped GVC to acquire Ladbrokes Coral, in a merger that creates one of the UK’s largest gaming companies.


GVC is an online sports betting, casino and bingo group, with brands including PartyPoker, Sportingbet and Foxy Bingo. It acquired Ladbrokes Coral Group, the largest operator in the UK retail betting and gaming market, with over 3,300 shops in England, Wales and Scotland.


Investec acted as Sole Sponsor and Corporate Broker to GVC. It managed the communication of the investment case to institutional investors and secured support for the deal from Ladbrokes Coral’s most significant shareholders.


The enlarged group has a portfolio of strong brands, proprietary technology, and is well-placed to deliver a positive experience to millions of consumers in the highly-regulated gaming environment.


Garry Levin, Corporate Finance Director at Investec, commented:


“We have a great relationship with GVC and thorough knowledge of the sector. As a result, we were able to advise GVC on the positioning of the equity story and likely market reaction, as well as help secure support from major shareholders. Additionally, our Special Situations Sales Team was able to provide real-time data on arbitrage trading in both GVC and Ladbrokes Coral.”   


The deal values Ladbrokes at between £3.2bn and £4bn, depending on the outcome of the ongoing Government review into the gambling industry, which could introduce staking limits for fixed-odds betting terminals.


Investec  has advised on a string of deals in 2018 to date, including Melrose’s takeover bid for GKN and Cineworld’s £2.5bn acquisition of Regal Entertainment.