Gaming VC Mum on Buyout Approach, Shares up 26%

17 April 2008

Gaming VC Holdings, the Germany-facing online gaming operator, said Thursday that it had received a preliminary approach that could lead to a buyout.

The company's board of directors said in a prepared statement that the approach may or may not lead to an offer being made for the entire issued, and to-be-issued, share capital of the company.

Just last week, Audley Capital Management, a U.K.-based investment advisory group, increased its stake in GVC to 6.9 million shares from 3.53 million.

The purchase, placed through the Audley European Opportunities Master Fund, takes Audley's shareholding to 25.4 percent -- just above the 22-percent threshold required to gain voting rights.

GVC has enjoyed steady financial growth over the last year. A December trading update showed that trading was slightly ahead of management's expectations for the full year.

Meanwhile, GVC shares, which trade on London's Alternative Investment Market, have more than doubled in value since December 31.

Stephanie Cuthbert of Abchurch, a communications group representing GVC, said the company could not comment on the approach at this stage due to market restrictions.

Shares in GVC rose 53.99p, or 26.21 percent, to 260.

Emily Swoboda is the senior staff writer at IGamingNews. She lives in St. Louis, Mo.