William Hill Rejects Revised Offer from Rank And 888
William Hill declines modified offer from Rank and 888
15 August 2016
Bookmaker William Hill has rejected a modified takeover approach from 888 and Rank, saying it still "substantially" undervalues the company.
William Hill said the new proposal provided its shareholders an approximated value of 352p a share, compared to a previous offer of 339p a share.
Rank and 888 declared their view that the deal was "a compelling worth development chance for William Hill".
But William Hill stated the revised deal was "highly opportunistic".
"The board continues to see no merit in engaging with the consortium," the company included.
The modified takeover proposition would see William Hill investors 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.
William Hill investors would end up with 48.8% of the combined group.
Under the previous approach, William Hill investors were provided 199p in cash and 0.725 BidCo shares, leaving investors with 44.6% of the combined group.
'Substantial threat'
"This revised proposition continues to considerably underestimate the company and the cash element of the proposition has actually not altered. Therefore, the board sees no merit in interesting," said William Hill's chairman, Gareth Davis.
"As we have stated before, this is highly opportunistic and complicated and does not enhance the strategic positioning of William Hill.
"The board continues to think we have a strong group to deliver remarkable worth to our investors and trading at the start of the 2nd half provides us renewed confidence in our stand-alone technique.
William Hill declines modified offer from Rank and 888
15 August 2016
Bookmaker William Hill has rejected a modified takeover approach from 888 and Rank, saying it still "substantially" undervalues the company.
William Hill said the new proposal provided its shareholders an approximated value of 352p a share, compared to a previous offer of 339p a share.
Rank and 888 declared their view that the deal was "a compelling worth development chance for William Hill".
But William Hill stated the revised deal was "highly opportunistic".
"The board continues to see no merit in engaging with the consortium," the company included.
The modified takeover proposition would see William Hill investors 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.
William Hill investors would end up with 48.8% of the combined group.
Under the previous approach, William Hill investors were provided 199p in cash and 0.725 BidCo shares, leaving investors with 44.6% of the combined group.
'Substantial threat'
"This revised proposition continues to considerably underestimate the company and the cash element of the proposition has actually not altered. Therefore, the board sees no merit in interesting," said William Hill's chairman, Gareth Davis.
"As we have stated before, this is highly opportunistic and complicated and does not enhance the strategic positioning of William Hill.
"The board continues to think we have a strong group to deliver remarkable worth to our investors and trading at the start of the 2nd half provides us renewed confidence in our stand-alone technique.