Shares in GVC Holdings tumble following reports about Turkish deal

Shares in Ladbrokes Coral owner GVC Holdings fell sharply on Monday as the company responded to weekend reports questioning the circumstances surrounding the sale of its Turkish business in 2017.

GVC disposed of its operation in Turkey, where gambling is restricted, in order to clear the way for its acquisition of Ladbrokes Coral.

It sold the Turkish business to a company called Ropso Malta Limited for €150 million (approx £134.5m) but then waived the payment to help secure the takeover of Ladbrokes Coral.

The Sunday Times reported that Ron Watts, one of three owners of Ropso, was a partner in GVC chief executive Kenny Alexander's New Hall Stud which the paper claimed would "raise questions" about the terms of the deal.

In a statement released on Monday GVC said the disposal of its Turkish operation had been "subject to an arms-length competitive process" overseen by Houlihan Lokey investment bank and that all the details had been fully disclosed.

The statement added: "The board today reiterates the fact that subsequent to the disposal of the group’s Turkish-facing business, GVC has no activity either directly or indirectly linked to the Turkish market.

"Furthermore, the board also categorically refutes suggestions that the group, or senior management, continue to benefit from any operations servicing the Turkish market."

Suggestions of involvement in Turkey are especially sensitive as GVC looks to expand into the burgeoning United States sports betting market. Alexander was grilled over GVC's previous involvement in Turkey at a hearing of the Nevada Gaming Control Board in May.

Shares in GVC closed Monday down more than seven per cent at 629p.

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