GVC Holdings expects to cancel Ladbrokes payment on 7 Jan
GVC Holdings confirmed it would be able to cancel the potential payment to former Ladbrokes Coral shareholders in 10 days' time after the government enacted the cut in maximum stakes for fixed-odds betting machines to £2.
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As part of GVC's takeover of Ladbrokes in March, the company issued securities known as contingent value rights (CVRs) that would have led to it paying £676m to Ladbrokes Coral shareholders if the law had not been passed before 29 March 2019.
But after parliament's blessing and official enactment of the new law on Tuesday, the CVRs will now become worthless.
The CVR requires a period of 10 business days to elapse after enactment of the law before the formal valuation process can be completed by the representatives of GVC and the CVR holders.
Upon GVC receiving confirmation from them that the CVR is valued at 0 pence, the CVRs are automatically cancelled, GVC said on Wednesday, meaning it therefore expects to be in a position to announce the cancellation of the CVRs on or around 7 January 2019.