GVC publish Ladbrokes Coral acqusition prospectus

GVC Holdings published details on its approximately GBP 3.8 billion takeover of Ladbrokes Coral in an official prospectus released late Friday.

The executive leadership structure of the enlarged group will comprise Lee Feldman as Chairman, Kenneth Alexander as Chief Executive and Paul Bowtell as Chief Financial Officer, the only Ladbrokes Coral Director to join the enlarged group.

The senior executive team will comprise joint Chief Operating Officers Andy Hornby and Shay Segev. Hornby will be responsible for retail business in the UK and Europe as well digital marketing. Segev’s responsibilities will comprise technology, product, customer service and leadership of operation and technology integrations post completion.

Australian operations will report directly to Kenneth Alexander.

On completion of the acquisition, Ladbrokes Coral chief executive officer James Mullen will step down from his position and from the board, along with all non-executive Ladbrokes Coral Directors.

GVC said operational restructuring of both GVC and Ladbrokes will most likely be required which may lead to redundancies of up to 6 percent of the combined employee base, representing 1600 jobs, whose functions overlap.

The Enlarged Group is anticipating pre-tax cost synergies of at least GBP 100 million per annum by 2021 with technology and data accounting for 44 percent, corporate and administrative efficiencies 30 percent, marketing efficiencies 14 percent and the remaining 12 percent spread over consolidation of some international businesses and savings in payment processing and professional services fees.

The creation of an enlarged group is reliant on a resolution to approve the Scheme being passed at the Court Meeting by at least 75 percent, receiving Court sanctions, approval of Admission and a UKGC determination that all operating licenses held by Ladbrokes Coral shall continue to have effect following the acquisition.

The Court Hearing is currently expected to take place on March 26, 2018.