A prominent American gaming enterprise, Caesars Entertainment, has finalized a deal to obtain all of William Hill’s operations through its subsidiary, Caesar’s UK Holdings. The purchase price is roughly £29 billion (€31.7 billion/$37.2 billion).
The agreement terms, revealed earlier this week, indicate that Caesar’s will buy William Hill for 272 pence per share. This follows Caesar’s completion of its due diligence on the transaction.
The acquisition still requires approval from William Hill stockholders. Nevertheless, the William Hill board of directors believes the deal terms are “fair and reasonable” and will unanimously and unconditionally recommend accepting the offer.
Roger Devlin, Chairman of William Hill, stated, “The William Hill board believes this is the optimal choice for William Hill and an attractive price for shareholders.”
“It acknowledges the substantial progress the William Hill group has made over the past 18 months and the risks and significant investment needed to maximize the US opportunity in a highly competitive environment, as well as the potential regulatory disruption in the UK and Europe.”
Tom Reeg, CEO of Caesars Entertainment, added, “The chance to integrate our land-based casinos, sports betting, and online gaming operations in the United States is a truly exciting prospect.”
Caesars is acquiring William Hill, a significant sports wagering enterprise. This acquisition will facilitate Caesars’ expansion in the United States, a substantial market for sports betting. Caesars intends to divest William Hill’s operations outside the US, including its UK operations, to concentrate on the American market. Caesars believes that a new owner would be more beneficial for these businesses, as they possess promising prospects. Caesars and William Hill already collaborate in the US, offering sports betting at Caesars casinos. William Hill holds a majority stake in this partnership, and they are aiming to broaden its scope.
Caesars Entertainment declared that the merger with William Hill’s American operations will reap benefits from numerous facets, including enhanced customer service, broadened market reach, and a more consolidated customer experience through integrated applications and digital wallets.
Caesars Entertainment also declared that other key advantages encompass possessing a “top-tier” asset portfolio, the capability to utilize Caesars Entertainment’s existing connections with athletic teams and events, and closer cooperation with media enterprises.
Caesars Entertainment stated that the combined enterprise, encompassing online gambling operations currently not part of the joint venture, is projected to generate up to $700 million in net earnings in the 2021 fiscal year.
Caesars Entertainment CEO Rigg remarked: “We anticipate collaborating with William Hill to bolster the future expansion of the United States by providing patrons with a high-quality and comprehensive experience across all domains of gaming, sports wagering, and entertainment.”
However, Caesars Entertainment also cautioned that it would terminate the mobile market access and the right to conduct sports betting in casinos granted through the Eldorado partnership if William Hill consents to being acquired by investment giant Apollo Global Management (former proprietor of Caesars Entertainment operations).
In the past week, both Caesars and Apollo submitted monetary offers for William Hill. However, board suggestions indicate that the casino operator is in the lead.
These acquisition discussions occur after a pivotal year for Caesars. In July, Caesars Entertainment was acquired by Eldorado Resorts through a reverse merger agreement, which the operators declared would establish the largest casino and entertainment enterprise in the United States.
Eldorado consented to purchase Caesars for $17.3 billion, encompassing $7.2 billion in cash and roughly 77 million shares of Eldorado common stock. The consolidated entity is now recognized as Caesars Entertainment, Inc.
Last month, Caesars Entertainment announced a net loss of $1.17 billion for the initial six months of the year.
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