NEWS & VIEWS

Global private equity and venture capital news and research

CVC’s Betfair buyout hopes hit by improved profit forecast

8 May 2013

sport_field_170sqCVC Capital’s chances of buying out UK-based online gambling company Betfair have suffered a blow after the business raised its profit forecast and cost savings.

A private equity consortium led by the buyout firm had a £912m takeover bid knocked back by Betfair last month after the company said the offer “fundamentally undervalued” it.

The company’s share price has since risen to 863.5p, although that is still below the 880p per share offer from CVC.

The firm held preliminary talks with Betfair shareholders Richard Koch and Antony Ball about an offer for the listed company in mid-April, with the trio deciding to team up for a bid.

Koch, who is a co-founder of LEK Consulting, currently owns a 6.5 per cent stake in Betfair.

In December 2012 the company unveiled a new strategic plan to focus on regulated markets and cut costs.

Betfair has recently exited Germany and Greece due to regulatory uncertainties and high tax rates.

CVC had a busy April after agreeing a €3.1bn buyout of German metering company Ista and hiring nine banks to help it sell a stake in Belgian postal service bpost through an IPO.

Copyright © 2013 AltAssets

FUNDRAISING & INVESTOR RELATIONS


Legals & Terms of UsePrivacy Policy


AltAssets is registered as a trademark of Investor Networks Limited (06695690).
Registered Office: Zetland House, 5-25 Scrutton St, London EC2A 4HJ
Content is © AltAssets 2000-2014