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William Hill Tosses Up $5 Billion Caesars Offer

C
aesars, CZR.O, is considering buying British bookmaking company William Hill, WMH.L, according to reports by Reuters.

After having first approached William Hill on September 1, the deal values William Hill at 2.9 billion pounds ($5 billion AUD) and will result in the casino operator taking over the UK sports-betting and online business.

The deal arose only two months following them joined US casino operators Eldorado Resorts in their $17.3 billion joining to form Caesars Entertainment Inc.

An offer of a near 60% premium over the Caesars share price was offered to William Hill on September 1. 

Both the companies announced that the William Hill board was disposed to recommend Caesar’s offer of 272 pence per share to their shareholders.

Following a two year high increase to over 312 pence in William Hill shares, the company said they had also received offers from buyout group Apollo, APO.N.

After share price having last been at 275 pence however, it is suspected that investors will anticipate a far lower price, even if Apollo presents a counter offer.

William Hill was also forced into the closing of 700 retail betting stores last year, after the UK government imposed a target on controversial fixed-odds betting.

Caesars explained the danger of adopting a U.S. business still in its infancy; and said that they intend on sourcing appropriate owners for William Hill’s UK business, which encapsulates over 1,500 betting stores.

Various familiar sources explored the possibility that Caesars could establish an unrelated deal to flip UK assets over to Apollo. launch an auction process

The alternative avenue of launching an auction type process for the company, whereby the company could be bid on by both corporate and financial bidders.