Terms of a recommended offer by GVC Holdings for Ladbrokes Coral Group have been agreed by the firms' boards.
Under the terms of the acquisition,Ladbrokes Coral Shareholders will be entitled to 32.7p in cash, 0.141 ordinary GVC Shares and a contingent entitlement of up to a further 42.8p in principal value of loan note plus an upward adjustment for the time value of money by way of a contingent value right.
The CVRs have been constituted by a deed poll entered into by GVC.
The offer price, assuming each CVR has zero value and no loan notes are issued, values the entire issued and to be issued ordinary share capital of Ladbrokes Coral on a fully diluted basis at approximately £3.2bn - a premium of 21.2% to the closing price of 135.7p per Ladbrokes Coral Share on 6 Dec.
The offer Price, assuming each CVR delivers its maximum value of 42.8 pence in principal value of loan note (without taking into account any upward adjustment for the time value of money), values the entire issued and to be issued ordinary share capital of Ladbrokes Coral on a fully diluted basis at approximately £4.0bn - a premium of 52.7% to 6 Dec's closing price.
The companies said: 'The enlarged group will have the opportunity to maximise revenue and profit growth by harnessing the best elements of each of their respective client relationship management tools and skills that have been developed in both businesses to acquire and retain customers as well as driving higher player yield.
'Ladbrokes Coral's significant retail presence and multi-channel know-how can assist GVC in driving further online growth in both GVC and Ladbrokes Coral brands.'