Rank & 888 submits initial £3.6 billion formal bid for William Hill takeover

The strategic Rank Group and 888 Holdings consortium has declared its intent to takeover William Hill proposing a formal offer of £3.6 billion for the FTSE-listed operator.

Updating the market Rank and 888 governances have proposed an initial 364p per share offer for William Hill, as deal stakeholders look to create another UK betting industry giant.

The Financial Times, reports that a consortium tie-up between the three parties would lead to the creation of the UK’s third biggest gambling operator with a projected £2.7 billion in revenues and earnings of approximately £500 million.

On 24 July Rank and 888 had made its initial interest in William Hill stating that it would place a joint + £3 billion takeover offer. In accordance with the UK Takeover Code, William Hill governance had granted Rank and 888 a 21 August deadline in which to make their combined bid.

The William Hill board will now move to review the £3.6 billion on behalf of its investors, at present no deal party has made any formal statement on the bid.

Reacting to industry speculation regarding the consortium bid in late July, William Hill governance stated that it would only consider a three-party merger offer if it could register a ‘superior value.’