The gaming company 888 Holdings has confirmed the purchase of William Hill International for £ 2.2 billion (almost £ 26.4 billion at today's rate).
William Hill has long been owned by the well -known casino company Caesars i Las Vegas Since last year, the shareholders accepted a takeover offer of $ 3.7 billion.
The US company had a lack of interest in the British company's 87 -year -old brand - namely their bookmaker shops in main streets, and the fact that they did not operate online in the United States. The purpose at that time was more to acquire William Hills Expertise, which accounts for £ 2.3 million a year in sports betting. At the same time, the US market was growing, after the Supreme Court abolished the ban on Sports Betting in 2018.
888 Holdings will continue with local "betting shops"
The lack of interest in anything other than the lucrative expansion operation led to a bid war with other unwanted American owners such as Apollo Capital Management and CVC Capital Partners, there ultimately 888 Holdings Got put in the winning shock.
With 888 Holdings They have signaled their purchase that the intention is to retain the bookmaker's 1400 stores as part of a grip on the focus of local Betting stores.
The Agreement will be completed in 2022
On Thursday, September 8, 2021 confirmed 888 that they had won the race to secure the rest of William Hill And said they expected to complete the agreement in early 2022, subject to approval from the shareholders.
888 Holdings is founded by Israeli tech contractors specializing in online casino games, but said they had no intention of selling William Hill's traditional "betting shops" in the streets.
Itai Pazner, CEO of 888, to:
"We saw interest in the outside retail, but we feel that retail is an integral part of William Hill.»
William Hill Has already trimmed their Betting stores from 2333 in 2018 to about 1400 today, a process accelerated by Covid-19 on street level where there was a cut in fixed odds terminals.
"Today, they manage a very well -run retail that is present in good and first -class places," Pazner said.
"We plan to keep the shops and the great people they have in them."
Interest from competitor
William Hills Rival in the main street, Betfred, was believed to be interested in buying William Hill, in an agreement that would almost double the size of the British network.
Pazner in and 888 was determined to proceed with the transaction, despite the uncertainty about the outcome of a milestone government review of gaming legislation.
888 has been eager for a collaboration with William Hill Since at least 2016, when they joined the bingo -tail owner Rank in an attempt to tie a three-way merger. This Agreement, which failed, was in itself an attempt to turn the table after that William Hill Had offered £ 700 million at £ 888 in 2015.
888 expect a lot of purchase
In a statement said 888 Holdings That it expected the transaction to result in a synergy saving of £ 10 million next year and up to £ 100 million a year by 2025.
They have assumed £ 2.1 billion in debt to finance the transaction, saying that they will issue up to £ 500 million in new equity to reduce the loan that was built on the agreement.
Russ mold, investment director in AJ Bell, said the acquisition "catapulates 888 in the big leagues", and theoretically, sales take sales from $ 814 million to $ 2.5 billion and the underlying earnings from $ 156 million to $ 464 million.
Source: The Guardian