William Hill declines modified offer from Rank and 888
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15 August 2016

Bookmaker William Hill has actually declined a revised takeover approach from 888 and Rank, saying it still "substantially" underestimates the company.

William Hill said the brand-new proposal used its shareholders an approximated value of 352p a share, compared with a previous bet9ja's welcome offer of 339p a share.

Rank and 888 reaffirmed their view that the deal was "an engaging value creation opportunity for William Hill".

But William Hill said the modified deal was "highly opportunistic".

"The board continues to see no merit in engaging with the consortium," the business added.
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The modified takeover proposal would see William Hill shareholders get 199p in money and 0.86 of shares in BidCo - the being formed by 888 and Rank to buy William Hill - for each share they own.

William Hill shareholders would end up with 48.8% of the yohaig code combined group.

Under the previous approach, William Hill investors were provided 199p in cash and 0.725 BidCo shares, leaving financiers with 44.6% of the combined group.
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'Substantial risk'

"this promotion code revised proposition continues to substantially undervalue the business and the cash element of the proposition has not altered. Therefore, the board sees no merit in engaging," stated William Hill's chairman, Gareth Davis.

"As we have said before, this promotion code is extremely opportunistic and complicated and does not enhance the strategic positioning of William Hill.

"the yohaig code board continues to believe we have a strong group to provide superior value to our investors and trading at the start of the 2nd half provides us restored confidence in our stand-alone strategy."

Casino and bingo hall operator Rank and online gambling group 888 said that the proposed brand-new combination would develop the UK's biggest multi-channel gambling operator by revenue and revenue.

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

However, William Hill has said the savings will not be attained in full till the end of 2020 and pose "significant threat for William Hill shareholders".

The president of 888, Itai Frieberger, stated a combined business might "lead innovation in the sector", while Rank primary executive Henry Birch stated the yohaig code deal made "engaging tactical sense for all three businesses".
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The UK's second and third-largest retail bookmakers, Ladbrokes and Gala Coral, are presently continuing with their ₤ 2.3 bn merger, which will see them leapfrog over William Hill to become the country's biggest company in the sector.
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The Competition and Markets Authority has told the two firms that they need to offer 350 to 400 shops in order for the merger to be cleared.
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