Sale of William Hill’s Non-US Assets Revised Down By £250m

Sale of William Hill’s Non-US Assets Revised Down By £250m

US casino giant Caesars Entertainment announced today a revision on the price consideration of the sale of William Hill’s non-US assets to 888 Holdings.

Downward Revision of Price Consideration

According to the announcement today, Caesars is selling the non-US assets of William Hill to 888 Holdings for a revised enterprise value of between £1.95 billion ($2.55 billion) and £2.05 billion ($2.68 billion).

The new price consideration reflects a £250 million ($327 million) reduction payable at closing and Caesars’ entitlement of up to £100 million ($130.6 million) as deferred consideration subject to 888 Holdings being capable of reaching certain financial targets in 2023.

888 Holdings tabled a £2.2 billion ($2.87 billion) offer for all assets of William Hill outside of the US in September last year to beat other candidates, including investment fund Apollo Global and online gambling rivals Betsson and Kindred, and recently announced the transaction would close in the second quarter of 2022.

Caesars expects to receive net proceeds of approximately £585 million ($764 million) or $785 million ($1.03 billion) at transaction close, after deduction for the repayment of debt and other working capital adjustments and subject to customary closing purchase price adjustments.

The transaction is subject to approval from the shareholders of 888 Holdings and obtaining regulatory approvals and is now expected to close in June 2022. Caesars is represented by Deutsche Bank and Linklaters LLP on the transaction.

Building upon William Hill’s Heritage

Having retained William Hill’s assets in the US following the $3.7 billion acquisition deal which closed in April last year, Caesars immediately announced its plans to rebrand William Hill’s retail sportsbooks in the US to Caesars and William Hill’s sports betting app to Caesars Sports.

In August, the casino operator announced the launch of Caesars Sportsbook, an easy-to-navigate sports betting app which combines all company’s sports betting assets under one brand and integrates mobile wagering with Caesars Rewards.

Caesars Sportsbook is available in Arizona, Colorado, Indiana, Iowa, Louisiana, Michigan, New Jersey, New York, Tennessee, Virginia, and West Virginia, and the brand runs retail sportsbook locations in Illinois, Maryland, and North Carolina, Nevada, and Washington D.C.

In February, Caesars Sportsbook became available in Washington State, providing in-person wagering at the biggest gaming facility in the Pacific Northwest, the Muckleshoot Casino, via four live betting windows and nine self-service betting kiosks, at the Chewelah Casino via self-service kiosks and at the Spokane Tribe Casino via a Caesars Sportsbook location inside the casino.

Author: Ian Douglas