British bookmaker Ladbrokes Coral PLC is in “detailed” talks with GVC Holdings PLC over a takeover offer worth about 3.9 billion pounds ($5.2 billion), the two companies said in a joint statement Thursday. The cash-and-stock deal under discussion would give Ladbrokes shareholders around 46.5% of the merged company, while GVC shareholders would have 53.5%. It would give each Ladbrokes shareholder 32.7 pence in cash per share, with a “potential further value” of up to 42.8 pence depending on the outcome of a U.K. government review of fixed-odds betting terminals. That would value Ladbrokes at £1.609 per share, plus the further value of up to 42.8 pence per share, the betting companies said. That compares with a closing price on Wednesday of £1.357. The offer would also give 0.141 GVC share for every Ladbrokes share. However, shareholders would be able to choose whether to get more cash or more GVC shares, if that choice was offset by those made by other shareholders. GVC, the owner of Sportingbet, and other betting and gaming outlets, must make or drop its offer for Ladbrokes by Jan. 4, 2018. GVC’s chief executive, Kenneth Alexander, would take the same role at the combined company. Shares of Ladbrokes opened up 24% on Thursday at £1.92. On the FTSE 250, shares of GVC were up 4.1% at £10.75.
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