Just had a very long exchange with Halifax Share Dealing as to why my holding in new GVC was not available for me to trade. Told they need to reconcile the shares for every customer whom they hold BWIN shares to ensure they balance! Can't give a timeline, so if price nosedives tomorrow, don't hold your breath on taking any potential losses. Really not good enough.
I'm going for max cash, and plan to over time take more money out of equities and put it into p2p lending from which I am getting on average about 10% return. The stock market is so volatile that I am getting weary of it!
Very thorough summary Leo, which will help those who did not know.I hold GVC & bought in here at just over 100p when Directors were busy buying .My intention was to end up with more GVX shares on the basis that I hope that when the deal is finally done the SP of GVC will continue rising to reflect the expected synergies & , following todays GVC update, to reflect the ability of GVC management to generate more profits out of Bwin assets than their current mananagement have achieved-all of which depends,of course, on Markets behaving.
I've had a stab at working this out but I cannot be sure my analysis is correct as it's easy to make a mistake.
My stockbroker has written to me and given me the following choices:
1) Receive 25p and 0.231 GVC shares for each of my BWIN.PARTY shares.
2) Receive maximum shares
3 Receive maximum cash
If I make no choice option 1 applies.
No details of how maximum shares or maximum cash works in practise were provided by my stockbroker in their letter! So a bit of research required.
On the BWIN.PARTY website there is a document called the final scheme document, on page 34 (Part II paragraph 4) there is an explanation of the mix and match option.
Under the terms of the Offer, bwin.party Shareholders (other than certain Overseas Shareholders) may elect to vary the proportions of cash consideration and New GVC Shares they receive in respect of their holdings of bwin.party Shares on the basis of:
for every 104.64 pence in cash 0.231 New GVC Share
for every 0.231 New GVC Share 104.64 pence in cash
Satisfaction of Mix and Match Elections will be subject to the Mix and Match Elections made by other bwin.party Shareholders. Mix and Match Elections may only be made in respect of whole numbers of bwin.party Shares. Irrespective of the number of bwin.party Shareholders who elect for cash consideration or New GVC Shares under the Mix and Match Facility, the total cash consideration to be paid and the total number of New GVC Shares to be issued pursuant to the Offer will not be varied.
So if I had 1000 BWIN.PARTY shares I could expect to receive cash = 1000 x0.25 = £250
If instead of receiving the cash I have shares I could theoretically have 250/(1.0464/0.231) shares (55). Assuming a current market price of 470p for GVC shares then their value would be 55 x 4.70 = £258.50. Clearly according to this analysis, at the current GVC market price taking the shares is preferable but only by a small amount.
Can I just get some views comments from others please?
Has anyone received an election in terms of what to accept e.g. % of shares to cash?
With GVC over 470p now, does that now make it better to take GVC shares rather than cash if you feel long term prospects better? Fully appreciate crystal ball and all that, but feel GVC management better prospects and tempted to take more shares if possible.
I am still in there but it continues to be a rollercoaster ride as it almost went sub 100p. Now it has shareholder approval I am holding on in the hope that GVC will deliver where the other imposters have not. The latters price has now got back to offer levels and there may be more to come from them. I have a good feeling and will take the GVC shares rather than cash......I think.
On the subject of anal ysts, I also note the upgrade on BWIN which is really a great bit of commentary and could have been given by someone not familiar with the sector. Seriously.
Because it is some cash and some GVC shares which did add up to 130p. However as the value of GVC shares rise now all the uncertainty has gone so does the value of the offer. That being said if the price of GVC shares fall so does the value of the offer.
By StockMarketWire | Wed, 16th December 2015 - 10:10
Citigroup today upgrades its investment rating on bwin.party digital entertainment PLC (LON:BPTY) to buy (from sell) and set its price target at 159p
Why would they do that when there is a recommended offer to sell at £1.30???
John, could not agree more, but this business has had more new management than most since it floated and not one has made any progress. A similar uplift would be more than welcome and the man on the street might get some of his money back!
Joke company we see this on going charade because of takeover rules etc imagine the poor daily management decisions that aren't in the public eye that Norbert Shuffleburger is making or pondering over daily!!!!!!!!!!!
One thing is clear this company needs new management the current guys have lost their way.
Look at Betfair was 500p now over 3000p good management is mainly what matters.
Well our 130p offer is really going well. So what now, GVC offer rejected and 60p here we come. More shareholder misery. GVC price continues to drop and therefore so does BWIN. Over a year to conclude a deal....couldn't make it up.
As a BWIN holder it just feels that the length of time this has taken (1 year since Board announced in talks) has negatively impacted on the price. This along with lack of confidence in deal has seen GVC go from 440p to 380p and an offer price for BWIN from 130p to 107p and falling. Happy days again for long suffering holders and the future for GVC holders I am sorry to say. If GVC board can deliver it will be the first time since Party floated at £12 a share.
Well, maybe not as we are now back sub 110p. GVC also down and as the two are now linked, no surprise there. Bet, no pun intended, the 888 board are having a little smile to themselves as they wait to be taken over or takeover. Still not certain this will get over the line and if not, down to 60 -80p range. 130p seems a long way away now.
Hence the drop, but at least GVC seems to have settled at 400p give or take. Given we were looking at 130p per share (mixed), disappointing to be looking at 103p. Directors' buys the other day looking iffy already.
Oh Sir Jasper, 888 times LMAO !
Oh Sir Jasper do not touch me, sings the coy maid in the first verse of the bawdy rugby ballad. Oh Sir Jasper, do not touch she sighs in the second verse; Oh Sir Jasper do is all she can manage by the fourth; and Oh by the last. 888, the betting business, seems to be singing from the same sheet.
Days after losing rival Bwin.party to GVC, 888s chairman Brian Mattingley, says: 888 is not a target. GVCs purchase of Bwin follows the pairing of Ladbrokes with Coral, and Betfair with Paddy Power as the gambling industry consolidates and arms itself against rising taxes, costs and regulation. 888 is beginning to look lonely.
In February, 888s owners spurned William Hills offer of 203p a share demanding £3. Shares in 888 are barely 165p now and the odds are that William Hill will come calling again. If so, the response from 888 this time is more likely to be a breathy Oh, Sir Jasper.
Interesting to see 2 Directors buying 150k of shares ahead of being Xdiv(10/9) & ahead of the deal.I hold GVC & considering buying in here as a "cheap" way into the merged entity- & the divi of 1.92p is better than nowt,assuming the SP stays at similar or higher levels.
He may have as this business is so complex and open to external factors. Just read the full annual accounts to see the legal issues that could come back and bite them in the .......That said, the advisers will have done all their due diligence I am sure!!
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