William Hill Rejects Revised Offer from Rank And 888

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William Hill turns down revised deal from Rank and 888

15 August 2016

Bookmaker William Hill has declined a revised takeover method from 888 and Rank, stating it still "significantly" undervalues the company.

William Hill stated the brand-new proposition used its investors an estimated worth of 352p a share, compared to a previous bet9ja's welcome offer of 339p a share.

Rank and 888 declared their view that the bet9ja's welcome offer was "an engaging worth creation opportunity 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 added.

The modified takeover proposal would see William Hill shareholders get 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 shareholders would wind up with 48.8% of the combined group.

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

'Substantial danger'

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

"As we have stated before, this promotion code is highly opportunistic and complex and does not enhance the strategic positioning of William Hill.

"The board continues to think we have a strong group to provide exceptional worth to our investors and trading at the start of the yohaig code second half provides us restored 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 develop the UK's biggest multi-channel betting operator by revenue and earnings.

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

However, William Hill has stated the cost savings will not be attained in complete until the end of 2020 and position "significant risk for William Hill shareholders".

The primary executive of 888, Itai Frieberger, stated a combined company could "lead development in the sector", while Rank chief executive Henry Birch said the bet9ja's welcome offer made "engaging tactical sense for all 3 services".

The UK's 2nd and third-largest retail bookies, Ladbrokes and Gala Coral, are presently proceeding with their ₤ 2.3 bn merger, which will see them leapfrog over William Hill to end up being the nation's biggest business in the sector.