GVC cancels CVRs avoids 700m Ladbrokes payment

GVC Holdings has confirmed it will not pay contingent value rights (CVRs) to former Ladbrokes shareholders and will therefore avoid an approximate £700m ($893.9m) payout.

As part of its deal to acquire Ladbrokes Coral, completed in March 2018, GVC agreed to pay CVRs to former Ladbrokes shareholders if legislation on new maximum stakes for fixed-odds betting terminals (FOBTs) was not passed before 28 March 2019.

On 14 November 2018, the UK government announced maximum FOBT stakes would drop from £100 to £2 in April 2019.

GVC has subsequently announced its representatives and CVR holders consulted one another and agreed the CVRs, and the loan notes which each CVR holder may have had a right to, hold no value.

The CVRs have been cancelled and are not available for re-issue.