GVC Holdings is in discussions with Ladbrokes Coral regarding a possible combination of the two businesses.
Ladbrokes Coral has received a non-binding proposal from GVC regarding a possible offer for the entire share capital of the company.
The proposed offer is expected to include a mix and match facility allowing Ladbrokes Coral shareholders the opportunity to elect to receive more cash or more new ordinary shares in GVC, subject to offsetting elections made by other Ladbrokes Coral shareholders.
Based on the terms laid out, both parties anticipate that Ladbrokes Coral shareholders would hold a stake of around 46.5 per cent in the enlarged business, with GVC shareholders holding 53.5 per cent.
The determination of the senior management positions are to be finalised over the coming weeks, but both parties have agreed that GVC’s Kenneth Alexander will be the CEO of the enlarged group following completion.