Merger talks between UK bookmaker William Hill and Canadian online gambling company Amaya Inc. have ended with both sides walking away from a deal.
The two gambling companies had announced they were in talks about a merger, but prospects for a deal quickly went south after a leading investor in William Hill—Parvus Asset Management—came out against the plan. William Hill said it decided to walk away after canvassing its biggest investors. Parvus controls about 14 percent of the company.
Amaya officials also announced they had decided the company could best deliver shareholder value by remaining an independent company, according to a report by Reuters.
Parvus Asset Management said in a statement that officials were glad the talks ended.
“We’re pleased that the board has decided to cancel the talks with Amaya, and, from our perspective, we’re looking forward to working constructively with the board with regard to creating shareholder value for William Hill owners,” Parvus co-founder Mads Gensmann said.
Ralph Topping, longtime William Hill chairman, also came out against the merger.
“I fully support what Parvus are doing, because they are good people,” said Topping. “When this deal was announced I was left scratching my head. Both Amaya and William Hill have a lot to sort out in their own business. I’m very anxious on the future of William Hill.”
The collapse of the talks, however, leaves William Hill still looking for a partner in the face of a string on UK mergers including Paddy Power and Betfair as well as Ladbrokes and Gala Coral.
Amaya, which had been evaluating strategic alternatives since earlier this year, said it has ended that process. It had also received interest from GVC Holdings and private equity firms, sources have told Reuters.
“It was a pretty intensive process, and we had a number of interested parties at various stages and in various depths,” Amaya spokesman Eric Hollreiser told the news service.
“It was the conversations with William Hill that progressed the furthest,” he said. “We thought at the time, and in fact still think at this point, that there’s a lot of strategic and industrial logic to the potential pairing.”
William Hill rejected a joint takeover approach from 888 Holdings and bingo hall operator Rank Group in August.
In a statement, William Hill said it was focusing on the priorities set out by interim CEO Philip Bowcock: online, technology, efficiencies and international.
It said the company would “continue to consider strategic alternatives where they have the potential to create shareholder value.”
Amaya’s former Chief Executive Officer David Baazov is still interested in taking the company private, Amaya said in the statement, although the board said it has yet to receive an offer from him that it thinks will result in a completed deal.
Baazov stepped down from his role this year after being charged with insider trading charges by Canadian regulators. In February, Baazov indicated that he was in discussions with investors to make an offer for the company valued at around C$2.8 billion, or C$21 a share.
