Sportingbet rejects 52.5p-a-share offer from William Hill/GVC

AIM-listed online betting firm Sportingbet has rejected an indicative joint offer from sector peers William Hill and GVC Holdings for 52.5p per share.

Sportingbet announced two weeks ago that it was approached by the two companies which were drawing up a possible offer.

MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

"The board of Sportingbet has responded that this indicative offer significantly undervalues the business and its future prospects," the firm said in a statement.

Prior to the initial approach on September 19th, Sportingbet's shares had been trading within 40-44p range. The announcement sparked a jump to the 50-54p mark.

Analysts at Panmure Gordon said in a research note today: "We believe Sportingbet is worth over 60p a share excluding any bid speculation and expect Wednesday's FY results to show the business continues to make strong underlying progress."

The shares were given an extra boost by the news today, trading up 3.40% at 53.25p by 15:06.

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.