GVC Holdings PLC Disposal (3619V)
November 02 2017 - 3:00AM
UK Regulatory
TIDMGVC
RNS Number : 3619V
GVC Holdings PLC
02 November 2017
2 November 2017
GVC Holdings PLC
("GVC" or the "Group")
Disposal
The Board of GVC is pleased to announce the sale of Headlong
Limited, a wholly owned subsidiary, and other companies ("Headlong
and associated businesses") that comprise its Turkish facing
operations to Ropso Malta Limited, a company backed by investors
currently providing the primary IT services to the business (the
"Disposal"), for performance related earn-out consideration of up
to a maximum amount of EUR150m in cash (the "Consideration"). The
Consideration is receivable on a monthly basis over a five year
period.
Completion is conditional on gaming regulatory and lender
approval and is expected take place by the end of December 2017.
Following completion, transitional services arrangements have been
agreed for an initial limited period not to exceed 6 months.
In the year ended 31 December 2016, Headlong and associated
businesses generated approximately EUR35m of Clean EBITDA;
management expect a similar Group Clean EBITDA contribution from
the respective operations for the financial year ending 31 December
2017. Headlong and associated businesses had gross assets of EUR21m
as at 31 December 2016.
The decision to sell Headlong and associated businesses has been
taken against a backdrop where, in an increasingly maturing and
regulating online gaming world, the Board has concluded it is now
appropriate for GVC to further increase its focus on regulated
markets. Following the Disposal the regulated(1) and/or locally
taxed proportion of the Group's NGR will increase to approximately
75%. The Disposal proceeds will be used for general corporate
purposes. The Disposal will not impact the Group's stated
progressive dividend policy. In addition, the Board believes that
the Disposal will increase the attractiveness of the Group to
investors and potential consolidation partners.
The strong start to the quarter as reported with the trading
update on 12 October 2017 has continued. Daily NGR in October was
26% (29% in constant currency) ahead of the same period in 2016,
boosted by an exceptionally high sports gross win margin, 13%, and
a positive response to new marketing campaigns.
Kenneth Alexander (CEO) said:
"As the Group evolves, our focus is increasingly on regulated
markets and markets where we believe there is a realistic path to
regulation. Today's disposal is consistent with this strategy and
enhances GVC's position as a leading operator in a rapidly
developing industry."
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulation (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
(1) Includes markets in the process of regulating, based on NGR
for the six months to 30 June 2017
- ends -
LEI: 213800GNI3K45LQR8L28
For further information:
GVC Holdings PLC
Kenneth Alexander, Chief Executive Tel: +44 (0)
Paul Miles, Chief Financial 1624 652 559
Officer Tel: +44 (0)
Nick Batram, Head of Investor 20 3938 0079
Relations & Corporate Strategy Tel: +44 (0)
20 3938 0066
Media enquiries:
Buchannan Communications
David Rydell Tel: +44 (0)
20 7466 5066
About GVC Holdings PLC
GVC Holdings PLC is a leading e-gaming operator in both B2C and
B2B markets. GVC has four business segments with a number of
brands; Sports Brands (bwin, Sportingbet, Gamebookers), Games
Brands (partypoker, partycasino, Foxy Bingo, Gioco Digitale,
CasinoClub), B2B and non-core assets. GVC acquired bwin.party
digital entertainment plc on 1 February 2016. The Group is
headquartered in the Isle of Man, is a constituent of the FTSE 250
index and has licences in more than 18 countries.
For more information see the Group's website:
www.gvc-plc.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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