According to published reports, the merger between gaming giants PartyGaming and bwin is all but assured. Pending approval by the Gibraltar Supreme Court, the marriage is scheduled to take place as of March 31.
This development occurred just recently, after the the Vienna Commercial Court entered their names into the registers of each corporation. The move will have an effect on bwin’s stockholders, which the company addressed with the following words:
“bwin shares (ISIN AT0000767553) will cease trading on the Vienna Stock Exchange at close of business on 25 March 2011. For administrative reasons, trading in bwin shares on the Vienna Stock Exchange must be suspended for three days prior to completion and also on the day of completion itself (31 March 2011). On 1 April 2011, existing bwin shareholders will receive 12.23 bwin.party depositary interests (ISIN GI000A0MV757) for each bwin share free of charge. These depository interests can then be traded on the London Stock Exchange under the ticker symbol BPTY.L.
“The exchange ratio of 12.23 bwin.party depositary interests for each bwin share will result in so-called ‘fractional entitlements’, rights to fractions of bwin.party depositary interests that cannot be traded on the London Stock Exchange. In accordance with the terms of the merger, these entitlements will be disposed of, and the proceeds of sale credited to the original beneficiaries (former bwin shareholders) in a process that may take up to two weeks.”
Several European governments have already approved the merger, including Romania, the Federal Competition authority in Austria, and Germany’s Federal Cartel Office. This will form a strong base in the heart of the continent, allowing the new conglomerate the chance to legally share their wares.