As expected, William Hill made a statement concerning the eventual takeover offer by gaming operators 888 Holdings and Rank Group saying that it remains doubtful on the matter. The bookmaker confirmed that it had already received a preliminary bid, but no acquisition price, transaction structure, terms and conditions and form of consideration were proposed by the two operators’ consortium. The latter had not suggested the takeover’s timing as well.
According to the official statement issued by William Hill on Monday, the company’s Board is ready to “listen and consider” any proposals of 888 Holdings and Rank Casino that could appear in the future.
The two above-mentioned companies revealed that they are having negotiations on an eventual three-way deal that could bring the market value of the combined entity to £5 billion. If the deal is finalised, it would bring together the largest casino and bingo services operator and the No.1 high-street bookmaking company on the territory of the UK.
Both 888 Holdings and Rank Casino shared that they had not made a formal approach to William Hill yet, and no eventual offer had been guaranteed. Still, their eyer remain on the bookmaker as a future target as part of the consolidation plans for their land-based and online operations.
However, William Hill also shared that it is yet unknown if an eventual deal with the consortium would boost its strategic positions on the market or help it deliver increased revenue. Currently, the largest British bookmaker has been focused on increasing and consolidating its international and digital businesses in order to bring further diversification.
The confirmation of the takeover bid was made by the company only a few days after the bookmaker announced its Chief Executive Officer James Henderson is leaving after spending only two years at the position and failing to generate profit on the constantly increasing online betting market.
William Hill’s Chairman Gareth Davis commented on the fact that the bookmaker parted ways with Mr. Henderson after him spending several decades in the company. Mr. Davis explained that the board expectations’ of the bookmaker’s digital performance were not met over the former CEO’s tenure which was one of the main reasons for Mr. Henderson’s untimely leave.
In addition, Chairman Davis also revealed that the UK-based betting operator’s in-house led development strategy has been struggling when it comes to its mobile and digital platforms. He also confessed that large challenges remain, as the online department of the bookmaker has not performed as expected recently.
- Author
Olivia Cole
