Caesars Entertainment and Apollo Management International LLP have reportedly sent takeover proposals to UK bookmaker William Hill PLC. The London-listed company is now a big operator in the US and the talks with the two companies are ongoing. William Hill has reiterated that there is no certainty that a deal will take place and the terms of the proposals have not been disclosed.
Potential Takeover
On Friday, shares of William Hill increased by more than 40%, with the company now valued at more than £3 billion. In the US, the equivalent is $3.82 billion. According to reports, Caesars Entertainment stated that the William Hill board had indicated that a possible cash offer at price level would be recommended to shareholders of the company.
The deal could be completed by the second half of 2021 if shareholders give the go-ahead as well as anti-competition authorities. Chief executive of Caesars, Tom Reeg, said that William Hill’s sports betting expertise will complement the current offering of Caesars and enable the combined group to better serves customers in the online and sports betting market within the US.
This year, William Hill has taken a hit due to the COVID-19 pandemic. The virus caused the company to close over 100 of its stores based in the United Kingdom. However, the company has seen significant growth in the United States over the past few years as the sports betting market continues to grow in the nation.
Already Partnered with Caesars
William Hill is already in a partnership with the Caesars company as the two signed a deal with ESPN in early September. The sports betting company will integrate its odds into the website of ESPN as well as fantasy application in states where it is legal to place bets on sports.