- 888 to purchase William Hill’s non-U.S. enterprise from Caesars
- Expects financial savings of at the least 100 mln stg/yr from the deal
- Deal classed as reverse takeover as per UK’s itemizing guidelines
Sept 9 (Reuters) – 888 (888.L) will purchase William Hill’s non-U.S. property for two.2 billion kilos ($3.03 billion) from U.S. on line casino group Caesars (CZR.O) in a deal that can give the net betting group entry to 1,400 betting retailers throughout Britain.
The acquisition, 888’s largest because it listed in London in 2005, may also give the corporate entry to William Hill’s 2 million lively UK prospects at a time when pandemic curbs have spurred report on-line playing volumes.
Caesars purchased William Hill for two.9 billion kilos earlier this yr as a part of a wider consolidation within the playing trade. U.S. gaming firms have been shopping for up London-listed teams to achieve extra experience as america opens as much as sports activities betting.
“Now we have discovered an proprietor for the William Hill enterprise outdoors the U.S. which shares the identical aims, approaches and longer-term ambitions of that enterprise,” Caesars CEO Tom Reeg stated on Thursday.
888’s shares, which have gained almost 40% to this point this yr, had been down round 1% by 0719 GMT.
888, with a market worth of 1.5 billion kilos, has obtained debt financing of about 2.1 billion kilos from J.P. Morgan (JPM.N), Morgan Stanley (MS.N) and Mediobanca
The transaction contains 0.7 billion kilos regarding the belief of current William Hill bonds, 888 stated.
888 stated it might increase about 500 million kilos via a share sale, including that it expects price financial savings of at the least 100 million kilos per yr from the acquisition.
The Occasions reported earlier this week that 888 had outbid Apollo (APO.N) for the William Hill property. 888 stated it has obtained unconditional assist for the deal from its largest shareholder, the Dalia Shaked Belief. The belief holds roughly 23% of the corporate.
($1 = 0.7261 kilos)
Reporting by Muvija M and Chris Peters in Bengaluru; Modifying by Shounak Dasgupta and Jane Merriman
Our Requirements: The Thomson Reuters Trust Principles.