Former Gala Coral owner eyes-up 888 buyout
London-based investment firm Permira understood to be interested in making 888 investment
888 Holdings’ share price rose sharply yesterday afternoon after reports suggested London-based private equity firm Permira had one eye on purchasing the gaming giant.
According to the Wall Street Journal, the investment vehicle views the Gibraltar-based operator as a potential acquisition target, although eGR sources suggested talks of a deal were wide of the mark.
The speculation saw 888’s share price rise from a low of 124.5p yesterday to a high of 139.75p, an increase of 12%, however, the share price had fallen back to 128p at the time of writing.
888 issued a “no comment” when contacted by eGaming Review, while Primera had yet to respond a request for comment.
Speaking to eGR, a City analyst said the absence of an announcement from either party this morning supported the view that “substantive discussions” are unlikely to have taken place and, with 60% of 888 owned by founders and their families, any discussions are unlikely to become public.
“If anything were to happen the first we would know would probably be an announcement of a deal,” he said.
Premira has been active in the gaming industry having recently swapped equity for debt in Gala Coral while it currently holds a significant stake in Italian gaming operator Sisal.
888 recently posted a 27% in increase in H1 EBITDA and 13% rise in revenues, however, the forthcoming UK Point of Consumption tax and increased competition from rival PokerStars has created a level of uncertainty around future performance.