William Hill Rejects Revised Offer from Rank And 888
William Hill turns down modified offer from Rank and 888
15 August 2016
Bookmaker William Hill has rejected a revised takeover method from 888 and Rank, stating it still "significantly" undervalues the business.
William Hill said the new proposition used its investors an estimated value of 352p a share, compared with a previous deal of 339p a share.
Rank and 888 declared their view that the offer was "a compelling worth creation chance for William Hill".
But William Hill stated the modified offer was "highly opportunistic".
"The board continues to see no merit in engaging with the consortium," the company included.
The modified takeover proposition would see William Hill shareholders receive 199p in money and 0.86 of shares in BidCo - the company being formed by 888 and Rank to buy William Hill - for each share they own.
William Hill investors would end up with 48.8% of the combined group.
Under the previous technique, William Hill investors were provided 199p in money and 0.725 BidCo shares, leaving financiers with 44.6% of the combined group.
'Substantial risk'
"This revised proposition continues to considerably undervalue the business and the cash aspect of the proposal has not altered. Therefore, the board sees no benefit in engaging," said William Hill's chairman, Gareth Davis.
"As we have said before, this is extremely opportunistic and complex and does not boost the tactical positioning of William Hill.
"The board continues to believe we have a strong team to deliver superior worth to our shareholders and trading at the start of the second half offers us renewed confidence in our stand-alone method."
Casino and bingo hall operator Rank and online betting group 888 said that the proposed new mix would develop the UK's largest multi-channel betting operator by revenue and revenue.
William Hill turns down modified offer from Rank and 888
15 August 2016
Bookmaker William Hill has rejected a revised takeover method from 888 and Rank, stating it still "significantly" undervalues the business.
William Hill said the new proposition used its investors an estimated value of 352p a share, compared with a previous deal of 339p a share.
Rank and 888 declared their view that the offer was "a compelling worth creation chance for William Hill".
But William Hill stated the modified offer was "highly opportunistic".
"The board continues to see no merit in engaging with the consortium," the company included.
The modified takeover proposition would see William Hill shareholders receive 199p in money and 0.86 of shares in BidCo - the company being formed by 888 and Rank to buy William Hill - for each share they own.
William Hill investors would end up with 48.8% of the combined group.
Under the previous technique, William Hill investors were provided 199p in money and 0.725 BidCo shares, leaving financiers with 44.6% of the combined group.
'Substantial risk'
"This revised proposition continues to considerably undervalue the business and the cash aspect of the proposal has not altered. Therefore, the board sees no benefit in engaging," said William Hill's chairman, Gareth Davis.
"As we have said before, this is extremely opportunistic and complex and does not boost the tactical positioning of William Hill.
"The board continues to believe we have a strong team to deliver superior worth to our shareholders and trading at the start of the second half offers us renewed confidence in our stand-alone method."
Casino and bingo hall operator Rank and online betting group 888 said that the proposed new mix would develop the UK's largest multi-channel betting operator by revenue and revenue.