In accordance with City Laws, William Hill Plc has published a full breakdown and notice of deal procedures related to its agreed £2.7 billion takeover offer by US Nasdaq gambling group Caesars Entertainment Inc.
Approved by William Hill’s board of directors, Caesars £2.7 billion offer will be presented to investors of the FTSE betting group on 17 November for its formal shareholder vote.
William Hill said it stands by Caesars offer as a ‘superior bid’, in which its US strategic partner has offered a 58% premium on the FTSE firm’s closing share price of 172.55p sanctioned on 1 September.
Writing to investors, company Chairman Roger Devlin underlined that an enlarged Caesars Entertainment offered the best foundation from which to accelerate William Hill’s US multi-state wagering ambitions.
Furthermore, a Caesars deal was underlined as critical in the formation of its high coverage media partnerships with ESPN and CBS Sports, seeking to establish US wagering’s first mass-market proposition.
Central to Caesars-William Hill ambitions will be the sports wagering activation of Caesars’ 60 million strong register customer base. Deal stakeholders projected that an effective merger could generate online gambling revenues of between $600m and $700m in the 2021 fiscal year.
Devlin and William Hill stated that Caesars acquisition had been accepted as all European gambling operators have to consider new COVID-19 risk factors impacting corporate investment and consumer confidence.
Heading towards a period of transition, Devlin reassured investors that William Hill’s executive team would remain unaffected by the Caesars takeover, after which deal-maker CEO Ulrik Bengtsson and Group CFO Matt Ashley services would be retained under a £2.1 million package.
Closing its notice, William Hill maintained that it will review an ‘intended bid’ by US private equity group Apollo Global Management, which has been given until 12 November to declare its bid.
William Hill said that it held the right to formally approve Caesars’ offer prior to Apollo Global presenting a concrete offer, as the firm serves as its joint-partner in the US and is critical to its market foundations.