William Hill declines modified deal from Rank and 888

15 August 2016

Bookmaker William Hill has actually turned down a modified takeover approach from 888 and Rank, saying it still "considerably" undervalues the business.

William Hill said the new proposal used its investors an approximated worth of 352p a share, compared with a previous offer of 339p a share.

Rank and 888 reaffirmed their view that the bet9ja's welcome offer was "a compelling value creation chance for William Hill".

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

"The board continues to see no benefit in engaging with the consortium," the company added.

The proposal would see William Hill investors receive 199p in money 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 investors would end up with 48.8% of the combined group.

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

'Substantial danger'

"this promotion code revised proposition continues to substantially underestimate the business and the money aspect of the proposition has not changed. Therefore, the board sees no benefit in engaging," stated William Hill's chairman, Gareth Davis.

"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 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 gaming group 888 stated that the yohaig code proposed new combination would develop the UK's biggest multi-channel betting operator by income and earnings.

They also said it would lead to expense savings of a minimum of ₤ 100m a year, while more cost savings could possibly be discovered "through positive engagement".

However, William Hill has stated the cost savings will not be accomplished completely until the end of 2020 and pose "significant danger for William Hill shareholders".

the yohaig code primary executive of 888, Itai Frieberger, said a combined service might "lead development in the sector", while Rank primary executive Henry Birch stated the offer made "compelling strategic sense for all 3 services".

The UK's second 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 end up being the nation's greatest company in the sector.

The Competition and Markets Authority has actually told the two companies that they need to bet9ja's welcome offer 350 to 400 stores in order for the merger to be cleared.

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