Ladbrokes & GVC today announced GVC had made an approach for Ladbrokes in a move that would create one of the UK’s largest gambling companies.

GVC have offered 160.9p per share with a possible additional 42.8p if certain terms are met.

In the offer terms, Ladbrokes Coral shareholders would be receive 32.7p in cash and 0.141 ordinary GVC shares for each Ladbrokes Coral share and potentially further value of up to 42.8p structured as a contingent value right (CVR).

The additional CVR payment is conditional on the outcome of government review of fixed odds betting machines.

Shares in Labrokes Coral soared over 20% on the news in early trade on Thursday.

Shares in Ladbrokes Coral have suffered in recent years as the government gears up to limit the maximum bet size on fixed odds betting machines, a significant element of Ladbrokes revenue.

The merger would may the new group one of the UK’s largest online Bingo operators with brands such as Gala Casino & Gala Bingo, Bwin, Foxy Bingo and Partypoker.