The individual share value of 999 Holdings reportedly soared by almost 30% after the official news release confirmed that it will be paying less for the non-American assets of rival William Hill. American casino giant Caesars Entertainment Incorporated finalized a $5.2 billion bargain to acquire William Hill about a year earlier and had been using the brand for its online and retail sports betting business in the United States. It is now to receive several hundred million less as per the revised agreement.
888 Holdings will pay between $2.55 billion and 2.68 billion for the assets, down $326 million from an earlier agreement. The two sides struck a deal in September 2021. According to a report from the Reuters news service, the London-listed behemoth inked a cash-and-stock arrangement worth approximately 2.8 billion to see it acquire William Hill’s estate of 1,408 retail betting shops and two million customers spread across the length and breadth of the United Kingdom.
“The amendments to the sale and purchase agreement reflect the change in the macro-economic and regulatory environment since the announcement of the acquisition as well as compliance factors impacting the William Hill business including actions taken as part of an ongoing review by the Gambling Commission of the United Kingdom. The board of directors of 888 Holdings continues to believe that the acquisition represents a transformational opportunity for 888 Holdings to significantly increase its scale, further diversify and strengthen its product mix and build leading positions across several of its key markets.” 888 Holdings said in a statement.
Read the entire filing from 888 Holdings here.
Gibraltar-based 888 Holdings is already responsible for a vast array of iGaming domains including 888.com, 888Casino.com and 888Poker.com. With the purchase of William Hill’s assets, it is reportedly set to be its largest since listing in London almost two decades ago. On the discounted deal, the buyer allegedly explained that this came after the pair fixed the value of the assets being acquired to something between $2.5 billion and $2.7 billion.
Caesars is entitled to receive up to $130 million as deferred consideration subject to the enlarged business of 888 Holdings meeting certain 2023 financial targets. It also expects to receive net proceeds from the transaction at closing of approximately $764 million, subject to receipt of the approval of shareholders of 888 Holdings and regulatory approvals. The transaction is estimated to close in June 2022.