william-hill-rejects-revised-offer-from-rank-and-888

William Hill rejects revised bet9ja's welcome offer from Rank and 888

15 August 2016

Bookmaker William Hill has actually declined a revised takeover method from 888 and Rank, saying it still "considerably" undervalues the business.
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William Hill stated the brand-new proposition used its shareholders an approximated worth of 352p a share, compared to a previous bet9ja's welcome offer of 339p a share.

Rank and 888 their view that the offer was "a compelling value creation chance for William Hill".

But William Hill said the revised deal was "highly opportunistic".

"The board continues to see no merit in engaging with the consortium," the company included.
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The modified takeover proposition would see William Hill shareholders receive 199p in money and 0.86 of shares in BidCo - the business being formed by 888 and Rank to purchase William Hill - for each share they own.
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William Hill investors would wind up with 48.8% of the combined group.

Under the previous approach, William Hill shareholders were offered 199p in money and 0.725 BidCo shares, leaving investors with 44.6% of the combined group.
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'Substantial threat'

"This revised proposal continues to significantly undervalue the business and the money component of the proposal has not changed. Therefore, the board sees no merit in interesting," stated William Hill's chairman, Gareth Davis.
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"As we have stated before, this promotion code is highly opportunistic and complicated and does not improve the strategic positioning of William Hill.

"The board continues to think we have a strong team to deliver remarkable value to our investors and trading at the start of the second half gives us renewed confidence in our stand-alone strategy."

Casino and bingo hall operator Rank and online gaming group 888 stated that the proposed new combination would produce the UK's largest multi-channel betting operator by revenue and earnings.
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They also said it would result in expense savings of at least ₤ 100m a year, while more savings could possibly be discovered "through useful engagement".
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However, William Hill has stated the cost savings will not be attained completely up until completion of 2020 and posture "significant threat for William Hill investors".

The primary executive of 888, Itai Frieberger, stated a combined business could "lead development in the sector", while Rank president Henry Birch said the deal made "engaging strategic sense for all 3 organizations".
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The UK's 2nd and third-largest retail bookmakers, Ladbrokes and Gala Coral, are presently proceeding with their ₤ 2.3 bn merger, which will see them leapfrog over William Hill to become the country's greatest business in the sector.

The Competition and Markets Authority has told the 2 firms that they should sell 350 to 400 stores in order for the merger to be cleared.

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11 August 2016

William Hill rejects Rank and 888's quote

9 August 2016
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Rivals propose William Hill merger

25 July 2016