A gaming consortium formed by 888 and Rank Group have submitted a £3.6 billion formal bid for a William Hill takeover. It has been reported that the UK bookmaker’s shares are currently valued at 364p a piece. According to Paul McClean, Bryce Elder, and Arash Massoudi, the gambling operator also sets out merger collaborations that boost the value of the bid to 408p a share.
888 and Rank Group Join Forces with Rival
On Tuesday morning, 9th August 2016, William Hill shares were at 324.9p, down 0.8%. If the merger between 888, Rank Group and William Hill are materialized, it would result in the creation of a gambling powerhouse worth £2.7bn in revenues and earnings of at least £500m. The joint forces of the three operators will likely result in the third-largest online betting operator in terms of revenues.
Last month, 888 Casino representatives announced that the company was considering the option of the William Hill takeover bid. Last year, William Hill failed to acquire 888 in a £700m deal. The deal was not signed as 888 officials said the proposed amount was too low.
According to Casino News Daily, 888 and Rank Group are interested in the acquisition of William Hill so that they will minimize the costs from higher taxes and tougher regulation.
The Merger Gives William Hill Competitive Advantage
- William Hill will gain access to 888’s online platforms
- Take advantage of the technological capabilities
