UK gambling operator William Hill has rejected 888 Holdings and The Rank Group offer. According to Casino News Daily, the two companies who made an offer last week, approached William Hill with a new cash-and-stock proposal which was also rejected after an original offer was turned down.
The new takeover bid values each William Hill share at 352 pence. This simply means that the whole business is valued approximately at £3.1 billion. Commenting on the rejected offer, William Hill Chairman Gareth Davis told the media that it continued to undervalue the company significantly. In the proposal which was made last week Tuesday, 9th August 2016, each share in the operator was trading at 339 pence.
If William Hill had accepted the revised cash-and-stock proposal, its stockholders would have been disbursed 199 pence and receive 0.73 shares in the newly established company. Based on July 22, 2016 share prices, the original offer valued the operator at an estimated of £2.95 billion.
888 Holdings and The Rank Group confirmed the talks over the merger around late July 2016. The two operators are set to collaborate and form a single business, BidCo and to make a proposal to take over William Hill.
888 Holdings and The Rank Group to Offer William Hill a Better Deal
888 is currently one of the most profitable online gambling providers while The Rank Group has both online and land-based casinos across Europe. The two operators are also planning to spread their global reach across a vast number markets in all of their channels.
The two companies will continue their efforts to attract William Hill. They have up until the 21st August, 2016 16:00 PM GMT to make William Hill a better offer.
