William Hill edge closer to Sportingbet takeover after revised lower offer6th December 2012 / lee
William Hill took another step closer to taking over online gaming group and betting site Sportingbet. With the deadline to make an official offer for Sportingbet upon them, William Hill reached an outline agreement in what was a reduced offer worth £485 million. The recent announcement of Sportingbet’s financial tradings played into the hands of Britain’s biggest bookmaker, because with the weaker than expected trading update, William Hill were able to make a lower bid.
William Hill along with bidding partner GVC (an internet gaming group) went back to the table with a revised offer of 56.1p per share in offer which was a mash-up of money and GVC shares. Waiting has certainly paid off for William Hill because last month the parties came to a provisional agreement of 61.1p per share, a deal which the Sportingbet board were happy to take if officially made. But patience on the part of William Hill, and their desire not to overpay, were helped by Sportingbet’s difficult three months up to the end of October.
In the loss of turnover for Sportingbet, there was a positive upswing again in their Australian operations, the part that William Hill are keen to get their hands on. Sportingbet are a major player in the Australian online betting market and William Hill recognise the value in that. So a deal looks imminent now for the William Hill takeover. The new proposal has been agreed by all three companies now, and is just subject to the approval of the detailed terms. The new deadline for the deal is at 5pm on December 18th.