William Hill Rejects Revised Offer from Rank And 888

William Hill turns down revised deal from Rank and 888

Play Aviator virtual betting crash game on the Bet9ja platform

15 August 2016

Register at Bet9ja using the promotion code YOHAIG for a N100,000 welcome bonus

Bookmaker William Hill has turned down a modified takeover technique from 888 and Rank, stating it still "significantly" undervalues the company.

William Hill stated the brand-new proposition offered its shareholders an approximated worth of 352p a share, compared to a previous deal of 339p a share.

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

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

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

The revised takeover proposal would see William Hill shareholders get 199p in money 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 end up with 48.8% of the combined group.

Under the yohaig code previous method, William Hill shareholders were offered 199p in money and 0.725 BidCo shares, leaving investors with 44.6% of the combined group.

'Substantial risk'

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

"As we have actually said before, this promotion code is highly opportunistic and intricate and does not enhance the tactical positioning of William Hill.

"The board continues to think we have a strong team to deliver superior worth to our shareholders and trading at the start of the 2nd half offers us restored confidence in our stand-alone strategy."

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

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

However, William Hill has said the savings will not be attained in complete till completion of 2020 and posture "considerable risk for William Hill shareholders".

The president of 888, Itai Frieberger, stated a combined business could "lead development in the yohaig code sector", while Rank chief executive Henry Birch stated the bet9ja's welcome offer made "compelling strategic sense for all 3 organizations".

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

The Competition and Markets Authority has informed the 2 firms that they need to bet9ja's welcome offer 350 to 400 stores in order for the merger to be cleared.