Mon, 25 Jul 2016 | MERGER
Gambling firms 888 and Rank Group have approached William Hill to discuss a potential merger.
In response William Hill said it would “listen to and consider” any and all proposals, but conceded that it did not immediately see any “superior value” in combining the three companies.
Rank, the largest land-based casino chain in Britain, and online operator 888, said they saw “significant industrial logic in the combination”.
The merger approach was made in the days after James Henderson, William Hill's chief executive, was dislodged from his position after a run of profit warnings. He had only stepped into the post in August 2014, but had failed to solve the issues at the troubled online business.
In William Hill's latest trading update, turnover had dropped 11 per cent for its online division in the 17 weeks to 26 April 2016. Its shares have fallen by 21 per cent since the start of 2016, valuing the company at £2.7 billion.
To abide by UK takeover rules 888 and Rank have until 21 August to put in an offer or walk away. William Hill tried to buy 888 last year, offering £720 million, but 888 rejected the offer for being too low.
There has been consolidation among other players in the betting/online gaming industry, with Ladbrokes and Gala Coral agreeing a £2.3 billion merger, which won preliminary approvals in May. The enlarged group would be bigger than William Hill, which presently has the most shops in the UK. Meanwhile, Paddy Power and Betfair agreed to team up in September last year.
Other business merger news
Turnkey shopfitting specialists providing a complete package with services including consultation design (2D 3D visualisations and walkthroughs) procurement contract management joinery manufacture and installation of all elements. The company operate...
This well known and successful business, set up over 38 years ago, provides a comprehensive workshop service for motor vehicles/cars and light commercial vehicles and within the busy Surrey and South East region and has been in the current vendor’s o...
LEASEHOLD
The company specialises in producing furniture from a wide array of materials, allowing it to act as a one-stop shop for private and commercial clients. Operating nationally, the company caters to 20 active industrial and commercial clients, all of w...
LEASEHOLD