Betfair terminates talks with CVC Capital and partners

Betfair, the FTSE 250 online betting group, has received and rejected two revised proposals from CVC Capital Partners, Richard Koch, Antony Ball and partners valuing each Betfair share at 920p and 950p in cash, respectively.

Betfair, the FTSE 250 online betting group, has received and rejected two revised proposals from CVC Capital Partners, Richard Koch, Antony Ball and partners valuing each Betfair share at 920p and 950p in cash, respectively.

Following further discussions, all talks have now been terminated.

The first preliminary proposal - made on the evening of May 10th - was rejected despite marking an improvement on the offer price of 880p per share made on April 22nd. After the group brought forward its trading update, which revealed it had delivered 'excellent' progress in its strategy, the offerors then upped their proposal to 920p.

Following the rejection of this they made another revised offer of 950p on the evening of May 12th, which they described as a "full and final offer".

Betfair said it reviewed the further revised proposal with its advisers and rejected it on the basis that it "undervalues the company and its attractive prospects".

Although the offerors then indicated that they would be willing to reconsider their proposal in conjunction with discussions regarding their business plan for Betfair, it became clear it would be impossible to agree on the terms of these, and as such all discussions were terminated, the group explained.

Gerald Corbett, Chairman of Betfair, said: "The board has spent considerable time assessing the various proposals, including detailed discussions with the co-offerors. The board concluded that none of the proposals represented adequate value or acceptable execution risk.

"Under the new direction of Breon Corcoran and his management team the board believes that Betfair is making excellent progress in the implementation of its strategy with momentum building from early success. The board remains confident in the continued delivery of this strategy and the company's outlook and growth prospects."

NR

Recommended

Share tips of the week – 21 January
Share tips

Share tips of the week – 21 January

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
21 Jan 2022
Seven cheap defence stocks to buy now
Share tips

Seven cheap defence stocks to buy now

We’ve got used to a world without war between major powers, but that era is coming to an end as Russia threatens Ukraine and China eyes Taiwan. Buy de…
21 Jan 2022
Invest in VCTs: tax-free investments set to break records
Investment strategy

Invest in VCTs: tax-free investments set to break records

Generous tax breaks make VCTs – venture capital funds – an attractive supplement to pensions.
21 Jan 2022
HubSpot: a tech stock set to tumble
Trading

HubSpot: a tech stock set to tumble

US tech stocks have had a fantastic couple of years. But this year is unlikely to be so bullish for high-fliers that can’t turn big profits.
18 Jan 2022

Most Popular

Ask for a pay rise – everyone else is
Inflation

Ask for a pay rise – everyone else is

As inflation bites and the labour market remains tight, many of the nation's employees are asking for a pay rise. Merryn Somerset Webb explains why yo…
17 Jan 2022
Temple Bar’s Ian Lance and Nick Purves: the essence of value investing
Investment strategy

Temple Bar’s Ian Lance and Nick Purves: the essence of value investing

Ian Lance and Nick Purves of the Temple Bar investment trust explain the essence of “value investing” – buying something for less than its intrinsic v…
14 Jan 2022
US inflation is at its highest since 1982. Why aren’t markets panicking?
Inflation

US inflation is at its highest since 1982. Why aren’t markets panicking?

US inflation is at 7% – the last time it was this high interest rates were at 14%. But instead of panicking, markets just shrugged. John Stepek explai…
13 Jan 2022