Representatives of the UK casino and sports betting giant William Hill announced that the company has rejected the revised takeover bid, submitted by Rank Group and 888 Holdings. They clarified that the bookmaker is still unable to identify any long-term benefits of joining the consortium.
Last week, 888 and Rank Group sent a £3.6 billion takeover proposal that was rejected in a couple of hours. They continued to seek a merger and urged William Hill officials to consider entering into talks and discussing the price as well as the debt concerns the bookmaker raised over the weekend.
Rank Group and 888 are willing to team up with William Hill with the aim of optimising the cost savings and creating the largest multi-channel gambling operator in the UK. However, William Hill considered the offer too low and ill-conceived.
The consortium had it until Sunday to revise the offer and propose new terms. William Hill received a proposal consisting of 199 pence in cash and 0.860 BidCo shares for William Hill share. In other words, if the bookmaker had accepted the offer, its shareholders would have owned 48.8% of the combined company.
Gareth Davis, the Chairman of William Hill, said that the consortium has changed the percentage of ownership, but the key clauses that needed to be revised remained the same and as a result, they have to reject the revised bid as well. Mr. Davis said that the revised offer undervalues William Hill and it does not propose a solution to the cash element. He was quoted as saying that the board sees no point in negotiating a deal.
William Hill’s Chairman went on to say that company’s board continues to regard the offer as highly opportunistic and the merger itself unable to contribute to the improvement of William Hill’s strategic positioning. He added that the current team was prepared to deliver superior value to the shareholders and added that their confidence in the stand-alone position was further boosted by the excellent start of the second half of the year.
Mr. Davis concluded that William Hill would consider the option of entering into talks with 888- Rank consortium provided that it is offered a bigger pay off as well as a bigger premium.
According to the takeover rules, 888 and Rank Group have to announce an intention for inking a deal no later than August 21st or discontinue their attempts for William Hill’s acquisition.
- Author
Olivia Cole
