The London-based hedge fund Parvus Asset Management, which is currently the largest shareholder of William Hill, has been trying to push the British bookmaker towards a takeover deal, according to The Sunday Times.
As reported by the newspaper, it is Parvus’ belief that William Hill should focus on a merger with another leading company operating in the online gambling industry, or to be acquired by one. GVC Holdings, The Rank Group and 888 Holdings have been on top of the list of with the potential options for such a deal. The investors from Parvus did not excluded The Rank Group from the possible suitors, although the company has already made an attempt to acquire William Hill in the summer of 2016.
William Hill is one of the oldest gambling operators in the UK, with its history dating back to 1934. Currently, the bookmaker employs about 16,000 people and holds a total of 2,370 land-based betting outlets in the country. Online gaming operations are also being provided by William Hill to date. Lately, the company has been facing some difficulties, with its shares on the London Stock Exchange (LSE) experiencing a drop over the past few months. The bookmaker also had made a few attempts to find a suitable partner for an eventual merger or acquisition deal, but these efforts failed.
Neither Parvus, nor William Hill commented on the speculations roaming around the media, but the rumours still run on the territory of the UK because of the considerable power of the investor.
This is not the first time when Parvus has interfered with the affairs of the British bookmaker. In October 2016, the company’s shareholder expressed its discontent with the potential merger with the Canadian operator Amaya.
When it comes to the reported willingness of Parvus to push William Hill towards a suitable merger or acquisition deal, the falling stock price of the UK bookmaker is not considered as the only reason for the investor to be motivated to look for an acquisition. As mentioned above, the UK gambling operator has been facing certain difficulties, resulting in earnings below expectations and disappointing market performance. To do things worse, earlier in 2017, the financial services company UBS issued a warning to William Hill’s shareholders that regulatory authorities could plan another series of harsh measures aimed at the local gambling operators.
It is not yet clear what would William Hill’s decision on the matter be, but in case that it follows the advice of Parvus and seeks for an eventual merger or acquisition deal, this could seriously reshuffle the positions of gambling operators on both the UK and international casino, betting and gaming arena.
- Author
Olivia Cole
