The value of shares in British bookmaking gaming giant William Hill has reportedly risen by over 8% today following news that the firm has proposed spending approximately $307.1 million in order to purchase Stockholm-listed online casino operator Mr Green and Company AB.
Premium price tabled:
According to reports from the Reuters and Press Association news services, London-headquartered William Hill is eager to increase the profitability of its online operations while simultaneously reducing its domestic exposure post-Brexit. The company has offered investors in Mr Green and Company AB up to $7.51 in cash per share, which would represent a 48.4% premium on yesterday’s closing price of $5.06.
Global footprint:
The news agencies reported that Mr Green and Company AB has a presence across 13 markets and is responsible via its Evoke Gaming Limited and Mr Green Limited subsidiaries for iGaming sites such as MrGreen.com, MamaMiaBingo.com, Vinnarum.com, Redbet.com and Bertil.com. Established in 2007, the operator purportedly holds online gambling licenses from authorities in the United Kingdom, Denmark, Malta, Ireland, Italy and Latvia with a similar authorization for Sweden expected later in the year.
Diversifying its business:
William Hill reportedly declared that the acquisition of Malta-based Mr Green and Company AB would create a ‘strongly positioned combined business’ featuring a pan-European footprint as well as operations in the United Kingdom and the United States. Reuters explained that the purchase could moreover help the London-listed behemoth to better deal with Monday’s decision by British Chancellor of the Exchequer Philip Hammond to raise the tax rate on offshore betting operators by an additional 6% to 21%.
Further American expansion possibilities:
Last month saw William Hill ink a 25-year deal to provide American land-based casino operator Eldorado Resorts Incorporated with digital and online sportsbetting and gaming services. Reuters reported that the acquisition of Mr Green and Company AB could also assist the firm to further expand into the United States market following May’s invalidation of the previous Professional and Amateur Sports Protection Act (PASPA) prohibition.
British firm to become ‘more international’:
Philip Bowcock (pictured), Chief Executive Officer for William Hill, reportedly told Reuters that the purchase would allow his firm to accelerate its diversification and immediately make ‘us a more digital and more international business’.
Reportedly read a statement from Bowcock…
“As a part of Brexit, we have to create an international hub outside of Gibraltar operations. Mr Green [and Company AB] will provide William Hill with an international hub in Malta, with market entry expertise and strong growth momentum in a number of European countries. We get a ready-to-go international hub. William Hill will move from a single brand to a suite of brands that can maximize growth opportunities moving forward in new and existing markets.”
Offer recommended to shareholders:
Reuters detailed that Friday saw Mr Green and Company AB record a nearly 51% swell in overall third-quarter revenues to $48.4 million while its board used a subsequent press release to detail that it had recommended the William Hill offer to shareholders.
Read a statement from Mr Green and Company AB…
“The board of directors of Mr Green and Company AB unanimously recommends the shareholders of Mr Green and Company AB to accept the public offer from William Hill of $7.51 in cash per share.”