April 20 (Reuters) - William Hill UK and 888 owner Evoke confirmed on Monday that it is in talks with Greek lottery and gaming firm Bally's Intralot regarding a takeover proposal at 50 pence-per-share
William Hill UK owner Evoke weighs $304 million takeover bid from Bally's Intralot
Overview of the Proposed Takeover and Market Impact
Details of the Takeover Proposal
April 20 (Reuters) - Betting group Evoke, owner of William Hill UK and 888, is evaluating a takeover proposal from Greek lottery and gaming firm Bally's Intralot, it said on Monday, valuing the debt-laden UK company at 225.3 million pounds ($303.88 million).
The news sent Evoke's shares up nearly 16%.
Deal Structure and Financial Terms
The proposed 50 pence-per-share deal, a nearly 29% premium to Evoke's closing price on Friday, is expected to be an all-share combination with a partial cash alternative, the company said.
Industry Context and Company Challenges
Impact of UK Tax Hikes on Online Gaming
British tax hikes on online gaming last year left the industry reevaluating their businesses. Smaller UK-focused Evoke was one of the firms hardest hit by the tax increases.
Financial Performance and Strategic Moves
Its share price has collapsed in the past few years as the company built up high debt, missed profit expectations and faced rising taxes. It is worth less than a tenth of what it was at its peak in 2021, although it was trading at a six-month high on Monday.
Evoke withheld its outlook for the year in January, and said last month it would shut a number of betting shops from May, as it continued reviewing strategic options for the company, including a potential sale.
Bally's Intralot Expansion and Timeline
Market Presence and Recent Acquisitions
Bally's Intralot - active in 40 regulated jurisdictions worldwide - has been expanding its presence in the UK online gaming market.
It completed the acquisition of Bally's International Interactive business last year in a deal that made U.S.-based Bally's Corporation its majority shareholder.
Deadline for Firm Offer
The Athens-based company has until 5 p.m. London time on May 18 to announce a firm offer or walk away.
Additional Information
($1 = 0.7414 pounds)
(Reporting by Yamini Kalia in Bengaluru; Editing by Subhranshu Sahu and Susan Fenton)
