According to William Hill president Gareth Davis the offer massively undervalues William Hill and is very opportunistic, check out the details below!
As we have previously reported, in July there were rumors regarding a possible acquisition offer for UK bookmaker giant WIlliam Hill by the owners of 888poker, 888 Holdings and the operators of Grosvenor casinos and Mecca Bingo, Rank Group.
888 and Rank eventually came forward with an offer of $4,2 billion, which meant they would pay 364 pennies for every share.
According to news published on August 9, William Hill president Gareth Davis said the following about the offer:
''This offer massively undervalues William Hill, is very opportunistic and doesn't reflect the potential of the company.''
He also added that the deal would be a big risk for shareholders because the buyers would have covered $2,2 billion of the money from loans.
William Hill shares slightly strengthened after the news, they are currently sitting at 329 pennies per share. 888 Holdings shares fell 1,9% to 219,25 pennies per share and Rank Group shares fell 0,9% to 211 pennies per share.
When asked by Bloomberg, stock exchange analyst Alistair Ross said that a bigger offer and 888 and Rank can be expected, but it's unlikely they can come up with enough money for the purchase.
According to Ross, they would have to offer roughly 400 pennies per share if they want William Hill to take the deal.
Huge mergers are the current trend in today's gambling market, the Betfair/Paddy Power fusion created a mammoth company worth £5 billion while the Gala Coral/Ladbrokes merger created a new company worth $3.4 billion.
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