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Bookmaker GVC in talks to buy Ladbrokes for up to $5.2 billion

Reuters  |  LONDON 

(Reuters) - Bookmaker has offered to buy Coral for up to 3.9 billion pounds ($5.2 billion) to create betting giant able to cope with the tougher rules being imposed by the British

In joint statement the two groups said they were in detailed talks over deal that would give Coral shareholders around 46.5 percent of the combined group, with shareholders holding the rest.

The Isle of Man-based GVC, which has grown rapidly into one of Britain's biggest online gambling companies, and high street-based held talks about deal earlier this year but they broke down without agreement.

On Thursday they said had made non-binding cash and shares offer to Ladbrokes, with the final price determined by the outcome of the government's review into gambling machines in UK betting shops, which could hit profits at the target company.

Analysts and executives had expected the review to spark new round of consolidation in an industry that has been marked by near constant dealmaking.

The offer values Coral at 160.9 pence per share, equating to total equity value of around 3.1 billion pounds, plus contingent fee of up to 42.8 pence share depending on the outcome of the review.

Shares in Coral closed Wednesday at 135.7 pence, giving market capitalisation of 2.61 billion pounds. closed at 909 pence, valuing it at 2.77 billion pounds.

($1 = 0.7478 pounds)

(Reporting by Kate Holton and Arathy Nair, editing by James Davey)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, December 07 2017. 13:16 IST
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