William Hill declines modified deal from Rank and 888

15 August 2016

Bookmaker William Hill has declined a revised takeover technique from 888 and Rank, stating it still "substantially" undervalues the business.

William Hill said the new proposition used its investors an approximated value of 352p a share, compared with a previous deal of 339p a share.

Rank and 888 reaffirmed their view that the yohaig code deal was "a compelling value development opportunity for William Hill".

But William Hill said the modified offer was "extremely opportunistic".

"The board continues to see no merit in engaging with the consortium," the business included.

The modified takeover proposal would see William Hill investors get 199p in cash and 0.86 of shares in BidCo - the yohaig code company being formed by 888 and Rank to purchase 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 shareholders were used 199p in money and 0.725 BidCo shares, leaving investors with 44.6% of the combined group.

'Substantial danger'

"This revised proposal continues to significantly underestimate the company and the cash element of the proposition has not altered. Therefore, the board sees no benefit in engaging," stated William Hill's chairman, Gareth Davis.

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

"The board continues to think we have a strong group to provide superior value to our investors and trading at the start of the second half offers us renewed self-confidence in our stand-alone method."

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

They also said it would result in expense savings of at least ₤ 100m a year, while more cost savings could possibly be discovered "through useful engagement".

However, William Hill has stated the savings will not be achieved in full up until the end of 2020 and position "considerable risk for William Hill shareholders".

The primary executive of 888, Itai Frieberger, said a combined business might "lead development in the sector", while Rank president Henry Birch said the deal made "compelling strategic sense for all 3 businesses".

The UK's second and third-largest retail bookmakers, 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 country's most significant business in the sector.

the yohaig code Competition and Markets Authority has informed the 2 firms that they must offer 350 to 400 stores in order for the merger to be cleared.

William Hill in gambling takeover spat

11 August 2016

William Hill rejects Rank and 888's bid

9 August 2016

Rivals propose William Hill merger

25 July 2016