William Hill Rejects Revised Offer From Rank And 888
William Hill declines revised deal from Rank and 888
15 August 2016
Bookmaker William Hill has declined a modified takeover approach from 888 and Rank, stating it still "considerably" undervalues the company.
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William Hill said the brand-new proposal provided its shareholders an approximated value of 352p a share, compared to a previous deal of 339p a share.
Rank and 888 declared their view that the yohaig code deal was "an engaging value production opportunity for William Hill".
But William Hill said the modified deal was "extremely opportunistic".
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"the yohaig code board continues to see no merit in engaging with the consortium," the company added.
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The modified 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.
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William Hill shareholders would wind up with 48.8% of the combined group.
Under the previous method, William Hill were used 199p in cash and 0.725 BidCo shares, leaving investors with 44.6% of the combined group.
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'Substantial threat'
"this promotion code revised proposition continues to substantially undervalue the company and the cash element of the proposition has not altered. Therefore, the board sees no benefit in interesting," said William Hill's chairman, Gareth Davis.
"As we have actually stated before, this promotion code is highly opportunistic and complex and does not enhance the tactical positioning of William Hill.
"The board continues to believe we have a strong group to provide superior value to our shareholders and trading at the start of the 2nd half gives us restored self-confidence in our stand-alone method."
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Casino and bingo hall operator Rank and online gaming group 888 said that the proposed brand-new mix would create the UK's biggest multi-channel betting operator by profits and profit.
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They likewise said it would lead to cost savings of a minimum of ₤ 100m a year, while more cost savings could possibly be discovered "through constructive engagement".
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However, William Hill has said the cost savings will not be accomplished in full till the end of 2020 and position "considerable risk for William Hill investors".
The president of 888, Itai Frieberger, stated a combined company could "lead development in the sector", while Rank president Henry Birch said the deal made "compelling strategic sense for all 3 companies".
The UK's 2nd and third-largest retail bookies, Ladbrokes and Gala Coral, are presently 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 Competition and Markets Authority has actually told the 2 firms that they need to sell 350 to 400 stores in order for the merger to be cleared.
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