Caesars Entertainment, Inc. announced a revised agreement to sell the non-U.S. assets of William Hill to 888 Holdings PLC, for a revised enterprise value of between £1.95 billion and £2.05 billion.
The revised agreement reflects a £250 million reduction in consideration payable at closing, and Caesars being entitled to receive up to £100 million as deferred consideration subject to the enlarged business of 888 Holdings meeting certain 2023 financial targets.
After the repayment of debt and other working capital adjustments and subject to customary closing purchase price adjustments, Caesars expects to receive net proceeds from the transaction at closing of approximately £585 million or $785 million.
The transaction is subject to receipt of the approval of shareholders of 888 Holdings Plc and regulatory approvals. Caesars’ expectation is that the transaction should close in June 2022.
The two companies said in an announcement that changes in economic and regulatory conditions led to the revision. Shares in London-listed 888 soared nearly 30 percent in light of the fact 888 would have to raise less capital to partly fund the purchase.
Caesars bought British bookmaker William Hill in a $4 billion deal last year, and agreed in September to sell William Hill’s non-U.S. assets to 888 for £2.2 billion (US$2.88 billion). The purchase will give 888 access to William Hill’s 2 million active customers in the U.K.
888, which has online sports betting, poker and casino platforms, told Reuters it now plans to issue up to 70.8 million new shares, which represents about £136 million pounds. The prior plan was to raise £500 million.
