Amaya eyes acquisition link-up with GVC Holdings for bwin.party

UK business news sources have reported that Toronto listed Amaya Gaming is prepared to team up with GVC Holdings in order to create a special purpose vehicle and fend off a takeover of bwin.party entertainment by 888 Holdings.

The rumoured link-up of Amaya Gaming and GVC Holdings is the latest turn in the bidding war for bwin.party assets which heated up last week following the conformation of buyer interest by GVC Holdings and 888.

The creation of the special purpose vehicle, would see FTSE250 bwin.party purchased through a combination of cash offered by Amaya and GVC shares (AIM listed). The vehicle would be managed by GVC as majority shareholders, who would be further tasked with restructuring bwin.party assets over a two year period.

Amaya will be given the option to buyout bwin.party online poker assets (Party Poker) outright, and following the completion of the two year restructure under GVC management the operator would further gain first right to purchase the vehicles sports betting operations.

GVC governance has garnered a successful reputation for joint takeovers, having teamed up with William Hill in 2012 to acquire and split up Sportingbet Plc assets. The joint acquisition saw GVC gain Sportingbet Plc’s grey market (unregulated) assets.

Financial analysts Canaccord Genuity have pointed out GVC’s business strategy of operating in risky unregulated markets which makes bwin.party assets an appealing takeover propositions as the struggling operator generates half of its revenues from countries which currently lack online gambling and sports betting regulations and policies.