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William Hill declines revised deal from Rank and 888
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15 August 2016
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Bookmaker William Hill has turned down a modified takeover method from 888 and Rank, saying it still "significantly" undervalues the business.

William Hill said the brand-new proposition offered its shareholders an approximated value of 352p a share, compared with a previous deal of 339p a share.
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Rank and 888 reaffirmed their view that the bet9ja's welcome offer was "a compelling value 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.

The revised takeover proposal would see William Hill shareholders get 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.

William Hill shareholders would wind up with 48.8% of the combined group.

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

'Substantial risk'
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"this promotion code revised proposal continues to significantly undervalue the business and the money component of the proposition has not altered. Therefore, the board sees no merit in engaging," Hill's chairman, Gareth Davis.

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

"The board continues to believe we have a strong group to deliver remarkable worth to our shareholders and trading at the start of the 2nd half gives us renewed self-confidence in our stand-alone method."

Casino and bingo hall operator Rank and online gaming group 888 said that the proposed brand-new combination would create the UK's biggest multi-channel gambling operator by revenue and profit.

They also said it would result in cost savings of at least ₤ 100m a year, while more savings might potentially be discovered "through constructive engagement".

However, William Hill has said the yohaig code savings will not be achieved completely till the end of 2020 and position "significant risk for William Hill shareholders".

The president of 888, Itai Frieberger, stated a combined company might "lead innovation in the sector", while Rank president Henry Birch stated the deal made "engaging strategic sense for all 3 organizations".

The UK's 2nd 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 nation's greatest business in the sector.
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The Competition and Markets Authority has actually told the 2 companies that they must sell 350 to 400 shops in order for the merger to be cleared.

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