William Hill rejects modified bet9ja's welcome offer from Rank and 888
bet9ja.com
15 August 2016
Bookmaker William Hill has rejected a revised takeover technique from 888 and Rank, saying it still "considerably" undervalues the company.
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William Hill said the new proposal used its shareholders an estimated value of 352p a share, compared to a previous bet9ja's welcome offer of 339p a share.
Rank and 888 reaffirmed their view that the deal was "an engaging worth development opportunity for William Hill".
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But William Hill said the revised offer was "highly opportunistic".
"The board continues to see no merit in engaging with the consortium," the yohaig code company added.
The modified takeover proposition would see William Hill shareholders receive 199p in money and 0.86 of shares in BidCo - the company being formed by 888 and Rank to purchase 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 provided 199p in money and 0.725 BidCo shares, leaving financiers with 44.6% of the combined group.
'Substantial danger'
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"this promotion code revised proposal continues to substantially underestimate the company and the money component of the yohaig code proposal has actually not changed. Therefore, the board sees no merit in appealing," said William Hill's chairman, Gareth Davis.
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"As we have actually said before, this promotion code is extremely opportunistic and complex and does not boost the tactical positioning of William Hill.
"The board continues to think we have a strong team to provide superior value to our investors and trading at the start of the second half provides us restored self-confidence in our stand-alone method."
Casino and bingo hall operator Rank and online gambling group 888 said that the proposed new combination would create the UK's largest multi-channel betting operator by income and profit.
They also stated it would result in expense savings of a minimum of ₤ 100m a year, while more savings could possibly be discovered "through useful engagement".
However, William Hill has said the savings will not be accomplished in full until completion of 2020 and posture "substantial risk for William Hill shareholders".
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The president of 888, Itai Frieberger, stated a combined organization might " in the sector", while Rank president Henry Birch said the bet9ja's welcome offer made "engaging tactical sense for all 3 businesses".
The UK's second and third-largest retail bookmakers, 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 yohaig code country's biggest company in the sector.
The Competition and Markets Authority has told the two companies that they must offer 350 to 400 stores in order for the merger to be cleared.
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William Hill Rejects Revised Offer from Rank And 888
rafaelabrowne8 edited this page 2025-10-19 12:47:20 +08:00