William Hill Share Prices Soar following news of Potential Takeover
Update: 3 October 2020 – William Hill accept Caesars bid
Following the recent announcement that they may have to permanently close up to 119 high street betting shops, leading UK bookmaker William Hill have received takeover proposals from casino operator Caesars Entertainment and Apollo Global Management.
William Hill announced earlier today that they have received two proposals from US private equity group Apollo since late August, while they have also received a proposal from Caesars although there aren’t any certainties that any such offers will be forthcoming.
The bookmaker has stated that recovery has been strong since the resumption of most sports fixtures and they are in a position to pay back the £24.5 million in furlough funds. The company’s shares fell earlier this year, however following this latest potential takeover announcement they soared as much as 41% in London trading. This was enough to lift them to their highest level since 2018 and on the back of this the company now has a market value approaching £3.1 Billion.
Hill shares have soared following news of the potential takeover deal
Apollo are no strangers to the gambling sector, the company having teamed-up with TPG in 2018 for a buyout of Hannah’s Entertainment Inc, the latter subsequently renamed Caesars Entertainment. William Hill are in partnership with Caesars and the two companies have been in discussions with regard to merging some of their US operations.
This announcement from William Hill has started the clock running for the potential takeover bid, the two groups having until 23rd October to announce firm proposals under UK takeover rules, however an extension to this can be made.