Bwin.Party plunges as potential investors' interest folds
Bwin.Party plummeted on Friday, after reports emerged that potential suitors are rumoured to have lost interest in acquiring the betting group.
Bwin.party Digital Entertainment
124.00p
16:49 28/01/16
FTSE 250
19,601.98
17:09 25/04/24
FTSE 350
4,434.34
17:09 25/04/24
FTSE All-Share
4,387.94
16:49 25/04/24
Travel & Leisure
7,552.90
17:09 25/04/24
Late in 2014, a number of suitors, including Amaya Gaming Group, William Hill, Ladbrokes and Apollo Global Management had been linked to a takeover offer for the FTSE 250 group.
However, according to a report published by the Financial Times on Friday afternoon, “discussions have not moved forward from that initial phase”.
Citing sources familiar with the situation, the paper says that some of the potential bidders had “a serious look” at the company, but remained interested in purchasing only some of its activities, particularly its sports betting business.
The poker arm was not deemed attractive, with one of the sources saying it was in “free-fall”.
The division generated revenues of €114.6m in 2013, down from €176.5m in 2012, with Bwin reporting a first half after tax loss of €94m in 2014, which it attributed “almost entirely” to its poker business.
On Friday, Bwin shares plummeted 18.29% to close at 83.75p.