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

15 August 2016

Bookmaker William Hill has turned down a revised takeover method from 888 and Rank, stating it still "significantly" underestimates the company.

William Hill said the brand-new proposition used its shareholders an estimated value of 352p a share, compared with a previous bet9ja's welcome offer of 339p a share.

Rank and 888 declared their view that the deal was "a compelling value production opportunity for William Hill".

But William Hill stated the revised offer was "extremely opportunistic".

"The board continues to see no benefit in engaging with the consortium," the business added.

The modified takeover proposal would see William Hill investors receive 199p in cash and 0.86 of shares in BidCo - the company being formed by 888 and Rank to buy William Hill - for each share they own.

William Hill shareholders would wind up with 48.8% of the combined group.

Under the previous approach, William Hill investors were offered 199p in cash and 0.725 BidCo shares, leaving financiers with 44.6% of the combined group.

'Substantial risk'

"this promotion code revised proposal continues to substantially underestimate the company and the money component of the proposal has actually not changed. Therefore, the board sees no benefit in engaging," said William Hill's chairman, Gareth Davis.

"As we have stated before, this promotion code is highly opportunistic and complicated and does not improve the tactical positioning of William Hill.

"The board continues to think we have a strong group to provide exceptional value to our shareholders and trading at the yohaig code start of the 2nd half offers us restored self-confidence in our stand-alone technique."

Casino and bingo hall operator Rank and online gambling group 888 stated that the proposed brand-new mix would develop the UK's largest multi-channel betting operator by profits and earnings.

They also stated it would lead to cost savings of a minimum of ₤ 100m a year, while more cost savings could possibly be discovered "through positive engagement".

However, William Hill has stated the savings will not be attained in full till completion of 2020 and posture "significant risk for William Hill investors".

The chief executive of 888, Itai Frieberger, said a combined organization could "lead development in the sector", while Rank president Henry Birch stated the deal made "compelling strategic sense for all 3 services".

The UK's second and third-largest retail bookies, Ladbrokes and Gala Coral, are currently continuing with their ₤ 2.3 bn merger, which will see them leapfrog over William Hill to end up being the nation's most significant business in the sector.

The Competition and Markets Authority has actually informed the two companies that they should bet9ja's welcome offer 350 to 400 stores in order for the merger to be cleared.

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