bwin.party up for sale

bwin.party digital entertainment has confirmed media speculation that it has entered into preliminary discussions with “a number of [undisclosed] interested parties regarding a variety of potential business combinations with a view to creating additional value for bwin.party shareholders”.

Activist investor Jason Ader has been pressuring the Board for some time, through his Spring Owl investment vehicle, calling for a board shake-up, cost cutting measures and an improved growth strategy (see previous reports).

While the company emphasised that any discussions remain at a preliminary stage and may or may not result in an offer being made for the Company, the Financial Times speculates that Amaya Gaming Group may be a major suitor, but a London Evening Standard report is betting on Playtech being at the table.

Playtech issued an update Wednesday saying it had placed “€297m of senior, unsecured convertible bonds due 2019”. The net proceeds of which it said will be “used for pursuing acquisitive and organic opportunities for Playtech in line with its strategy.”

bwin.party shares reacted positively to the announcement rising almost 17 percent to 126 pence.