April 23, 2013

Betfair says “No” to £910 million takeover

Betfair have rejected the takeover offer from CVC Capital Partners of some £910 million, saying it believes in its “unique” business and prospects.

The bid from CVC Capital Partners who are behind Formula 1, was rejected by Betfair on valuation grounds.

CVC announced last week that it has held talks with other investors, including Betfair shareholder and Richard Koch, about a possible joint approach for the online betting exchange.

The proposal from CVC valued the company’s shares at £8.80, compared with the £13.00 seen on its stock market debut in 2010.

Betfair says it is going through one of the “most exciting phases in its development”, thanks to a new strategy revealed in December and the appointment of a new management team led by chief executive Breon Corcoran.

Chairman Gerald Corbett said: “We have a unique business with a market position, profitability, cash flow and prospects that this proposal fails to recognise.”

CVC owns luggage firm Samsonite and also has stakes in Brit Insurance and theme park giant Merlin Entertainments.

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