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

15 August 2016

Bookmaker William Hill has actually turned down a modified takeover from 888 and Rank, saying it still "substantially" underestimates the yohaig code company.

William Hill said the new proposal used its investors an approximated value of 352p a share, compared to a previous bet9ja's welcome offer of 339p a share.

Rank and 888 declared their view that the bet9ja's welcome offer was "a compelling worth development chance for William Hill".

But William Hill said the modified bet9ja's welcome offer was "highly opportunistic".

"The board continues to see no benefit in engaging with the consortium," the business included.
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The revised takeover proposal would see William Hill investors receive 199p in cash and 0.86 of shares in BidCo - the business being formed by 888 and Rank to buy William Hill - for each share they own.
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William Hill investors would end up with 48.8% of the combined group.
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Under the previous approach, William Hill shareholders were offered 199p in cash and 0.725 BidCo shares, leaving investors with 44.6% of the combined group.

'Substantial risk'
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"this promotion code revised proposal continues to substantially undervalue the business and the money aspect of the proposition has actually not changed. Therefore, the board sees no merit in appealing," stated William Hill's chairman, Gareth Davis.
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"As we have stated before, this promotion code is extremely opportunistic and complicated and does not improve the tactical positioning of William Hill.

"The board continues to believe we have a strong team to provide superior worth to our investors and trading at the start of the second half offers us restored self-confidence in our stand-alone method."

Casino and bingo hall operator Rank and online gaming group 888 stated that the proposed brand-new mix would produce the UK's biggest multi-channel betting operator by revenue and revenue.

They also stated it would lead to cost savings of at least ₤ 100m a year, while more cost savings might possibly be found "through useful engagement".
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However, William Hill has said the savings will not be attained in full up until completion of 2020 and posture "substantial threat for William Hill shareholders".

The president of 888, Itai Frieberger, stated a combined service might "lead innovation in the sector", while Rank primary executive Henry Birch stated the deal made "compelling strategic sense for all 3 companies".

The UK's 2nd and third-largest retail bookies, Ladbrokes and Gala Coral, are currently proceeding with their ₤ 2.3 bn merger, which will see them leapfrog over William Hill to become the country's greatest company in the sector.

The Competition and Markets Authority has informed the 2 firms that they need to sell 350 to 400 shops in order for the merger to be cleared.
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