Bet on Brit bookie
UK’s William Hill rocketing as US investors eye takeover
Shares in British bookmaker William Hill soared Friday after the company revealed it received takeover proposals from two American suitors.
The London-listed stock ended the day up 43.4 percent — giving it a market value of $2.9 billion — after William Hill said it had been approached by private-equity giant Apollo Global Management and casino operator Caesars Entertainment.
William Hill didn’t disclose the terms of the proposals but said it is continuing discussions with both Apollo — run by billionaire buyout king Leon Black — and Caesars, which runs more than 55 resorts. Both potential buyers have until Oct. 23 to announce whether they will make an offer, the company said.
“There can be no certainty that any offer for
William Hill will be made, nor as to the terms on which any offer might be made,” William Hill said in a Friday statement.
Apollo declined to comment Friday, and Caesars did not immediately respond to a request for comment. The companies’ share prices shot up as much as 3.2 percent and 8.4 percent, respectively, on news of their interest in William Hill.
The offers come as Britain’s
betting shops are reeling from coronavirus-related restrictions on social movement and struggling with stricter regulations.
However, William Hill has offset the regulatory pressure at home by expanding in the United States and has partnered with CBS Sports, Caesars and ESPN to cash in on a relaxation of sports betting rules there.
London-based William Hill is one of the world’s largest sports-betting outfits and runs more than 150 US locations in 12 states, according to its Web site. The company is looking to build scale in the US and is in talks with Caesars — with which it already has a partnership — about merging some of their American operations, according to Bloomberg News, which first reported on the potential takeovers Friday.
Gambling companies have seen customers switch to online casino and bingo games as people spend more time indoors, leading William Hill to announce the closure of 119 shops last month as it becomes more digital.