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ias 39 Financial instruments: Recognition and measurement, states that all financial liabilities should initially be measured at their fair value and subsequently measured at amortised cost using the effective interest rate method. the effective interest has been calculated using the internal rate of return on the cash outflows across the period of the loan. 2015 €000's loan balance at 1 January 2015 - initial drawdown (20,000) initial costs and loan servicing fees paid 799 interest instalments paid to 31 december 2015 625 effective interest due to 31 december 2015 (1,245) loan balance at 31 december 2015 (19,821) 8.2 Betit option on 14 may 2014, the Company acquired a 15% stake in Betit holdings limited ('Bhl'). the Company has a call option to acquire the balance of the outstanding shares. the call option can be exercised no earlier than 1 July 2017 and no later than 30 september 2017, and would be subject to further maltese Gaming authority clearance and the stock exchange Rules. the minimum call option price is €70 million, and the actual price would be determined by the mix of revenues between regulated and non-regulated markets and certain multiples attaching thereto. if the Company decides not to exercise its call option Bsl may require the Company to acquire its shares in Bhl at a price determined by the mix of revenues between regulated and non-regulated markets and certain multiples thereof (but absent any floor on the price). Completion of this purchase would be subject to certain conditions including the Company's ability to raise the necessary financing. should the Company not raise the required financing, Bsl may acquire the Company's shares in Bhl for nominal consideration. the Company engaged a third party valuations specialist to value the options using a monte Carlo valuation model based on the enterprise value for Bhl and modelling of the anticipated exercise price. in valuing the underlying business of Bhl, a discounted cash flow model was used, applying a long-term growth rate of 2% (2014: 2%) to the Company's forecasts and a discount rate of 18% (2014: 18%) (based on comparison to industry peers and observable inputs). Based on this model, the fair value of the put and call options was a net liability of €0.7 million (2014: €1.7 million), leading to a movement in the fair value of €1.0 million. 9. called Up eQUity share capital on 21 may 2010 shareholders of Gaming VC holdings s.a., approved a redomiciliation to luxembourg which resulted, pari passu, in shareholders holding shares with a nominal value of €0.01 in GVC holdings PlC. as a result of this transaction, GVC holdings PlC acquired all the assets and liabilities of Gaming VC holdings s.a. arising from this transaction was the creation of a merger Reserve, which is distributable. at an extraordinary General meeting on 18 december 2015, the authorised share capital was increased to 350 million ordinary shares. the authorised and issued share capital is: 2015 2014 €000's €000's authorised ordinary shares of €0.01 each at 31 december - 350,000,000 shares (2014: 80,000,000 shares)* 3,500 800 issued, called Up and fully paid at 31 december - 61,276,480 shares (2014: 61,276,480 shares) 613 613 *The authorised share capital was increased as part of the Group's proposed acquisition of bwin.party GVC HOLDINGS PLC ANNUAL REPORT 2015 99 company financial statements