Gambling company William Hill Plc (WMH.L) on Monday announced that its Board has unanimously rejected the revised takeover proposal from 888 Holdings plc (888.L) and Rank Group plc (RNK.L) -Consortium, as it continues to substantially undervalue William Hill. News spread earlier today that the two companies have approached the major gambling operator with a new cash-and-stock proposal, which has, too, been rejected after an original offer was made last week and turned down, subsequently.
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Under the UK Takeover code, Rank and 888 governances have been issued a 21 August deadline in which to make or amend its formal offer.
The latest proposal equates to an estimated value of 352 pence per share, while the Consortium’s previous proposal has an estimated value of 339 pence per share on the same basis.
The revised takeover proposal would see William Hill shareholders receive 199p in cash and 0.86 of shares in BidCo – the company being formed by 888 and Rank to buy William Hill – for each share they own. That old proposal valued the company at an approximate of £2.95 billion, based on July 22 share prices. However, William Hill spurned the offer and branded it “highly opportunistic and complex”.
Rank Group and 888 set out plans for forming a consortium called BidCo to create a new influential gambling player.
Industry commentators have speculated the options of Rank/888 governances, who may choose to entice William Hill Shareholders by boosting the deals “cash element” or increasing William Hill’s stake within the business.
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William Hill shares trade at £3.29. Even without William Hill as part of their combined business, the two companies will expand their global reach across all channels and across a wide number of markets.
