888 Holdings acquisition of William Hill another step closer following a shareholder vote that voted unanimously in favour of the takeover (Image from williamhillgroup.com)
As anticipated, the 888 Holdings acquisition of William Hill’s non-US assets is expected to go through in Q2 after shareholders voted by a vast majority to approve of the merger. An important step in the acquisition process, this means that the deal could complete as early as next month.
When Caesars Entertainment acquired William Hill for around $4 billion in April last year, the company made it clear that it would sell off the sportsbook’s non-US assets. 888 Holdings quickly declared an interest and has been working on a deal ever since. After extensive negotiation, 888 Holdings and Caesars Entertainment finally reached an agreement in April this year. That agreement and gaining regulatory approval seems to have been met positively by shareholders who have unanimously approved the takeover during a vote. 99.73% of shareholders voted in agreement with the acquisition while just 0.27% voted against.
The Acquisition of William Hill’s non-US Assets Set to Complete Shortly
One of the reasons a shareholder vote was required was because this acquisition is technically a reverse takeover. That is because William Hill has a higher value and more assets than 888 Holdings. With one of the biggest hurdles now out of the way, the deal worth around $3 billion is free to complete in the coming weeks. This acquisition, which is expected to complete before the end of June, will allow 888 Holdings to become an even bigger gambling powerhouse.
Once the transaction is completed, the share capital of 888 Holdings will update on the list of authorised companies at the Financial Conduct Authority, while it will also start trading on the London Stock exchange. It is hoped that the above will allow the company’s financial status to improve following decreased performance so far this year and a $12 million fine from the UKGC (UK Gambling Commission). 888 Holdings is certainly confident that will happen after it announced that if the deal had been completed last year, the assets would have already brought in a revenue of over $2 billion by now.
Increased Growth Potential for 888 Holdings Once the Deal is Finalised
As you would expect, adding the non-US assets of William Hill will give 888 Holdings a far greater gambling reach. For a start, William Hill currently has over 1,400 retail bookmakers scattered across the United Kingdom while it also has award-winning online brands including Mr Green and the William Hill online casino. Aside from the physical assets gained, this deal will also allow 888 Holdings the potential for further growth. The company will gain access to a variety of new land-based and online gaming markets.
Once complete, according to 888 Holdings, the company will become the world’s third-largest publicly traded iGaming operator. That alone will give 888 Holdings the potential to scale even further. That is not expected to happen overnight, however. Especially considering the poor performance of William Hill’s European businesses in 2021. The company posted a net loss of over $280 million last year. That came despite an increase in revenue of 7.3% from the previous year. The reasons behind the poorer performance are obvious.
The company’s retail operations were hit hard due to the pandemic. Retail performance was down a staggering 53% on pre-pandemic figures from 2019. Fortunately, the company’s online performance helped to offset that somewhat. Over half of revenues brought in by William Hill in 2021 came from online operations in the UK. That was up 25% from the previous year.
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