Bwin and PartyGaming to complete merger this week
Plans to create the world’s biggest online gambling company took a step closer to reality last week when the Gibraltar Supreme Court endorsed the proposed deal to merge leading online gaming provider Bwin Interactive Entertainment AG with internet operator PartyGaming.
The two businesses announced their proposal for the merger last July claiming the new company would realise annualised synergies of around €55million from 2013. The company will be listed on the London Stock Exchange and based in Gibraltar where it will operate the existing brands under the name Bwin.Party Digital Entertainment plc. Current Bwin shareholders will take 51.7 percent shareholding in the new set up with PartyGaming holding 48.3 percent.
The new business will retain its focus on business-to-consumer products and will be geared to ‘steadily expand’ business-to-business and business-to-government interests. Plans include retaining Bwin’s Austrian operations where Bwin Services AG subsidiary will support selected areas of the group in Vienna.
The Supreme Court decision provides a clear path to conclude the deal which is expected to be formally completed on Thursday. Norbert Teufelberger, Co-Chief Executive Officer for Bwin and Jim Ryan, Chief Executive Officer for PartyGaming will serve as Co-Chief Executive Officers of the new venture.