LONDON (dpa-AFX) - William Hill PLC (WMH.L) confirmed that over the weekend it received a highly preliminary approach from 888 Holdings plc. (888.L) and Rank Group plc. (RNK.L) regarding a potential combination of the three companies.
William Hill noted that the Consortium did not put forward a proposal or set out a position on price, timing, terms, form of consideration or transaction structure.
William Hill said it would listen to and consider any proposal which might be forthcoming from the Consortium. However, it is not clear that a combination of William Hill with 888 and Rank will enhance William Hill's strategic positioning or deliver superior value to William Hill's strategy which is focused on increasing the Group's diversification by growing its digital and international businesses.
As a consequence of the announcement by the Consortium on 24 July 2016, William Hill is now considered to be in an 'Offer Period' as defined by the Code. Accordingly, William Hill is required to suspend share buybacks.
As per the U.K. rules, the Consortium is required, by not later than 5.00 p.m. on 21 August 2016 to either announce a firm intention to make an offer for William Hill or announce that it does not intend to make an offer.
As announced on Thursday, William Hill will publish its half-year results for the 26 weeks to 28 June 2016 on Friday, 5 August.
888 Holdings plc and The Rank Group Plc noted the recent press speculation regarding a potential transaction involving William Hill plc and confirmed that they are evaluating a possible offer for William Hill.
The Consortium sees significant industrial logic in the combination, through consolidation of their complementary online and land-based operations, delivery of substantial revenue and cost synergies and from the anticipated benefits of economies of scale which will accrue to all shareholders.
No formal approach has yet been made to the Board of William Hill and there can be no certainty that any such approach will be made. Accordingly, there can be no certainty that any transaction will ultimately take place, nor as to the terms on which any such transaction might be constituted.
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