Tipico Group in the Running to Buy William Hill for £1.5 Billion
The Tipico Group has pushed itself forward as one of the frontrunners to purchase all William Hill betting shops in the UK and its online operations for over £1.5 billion. The German brand, which is owned by a massive equity firm – one of the world’s largest, as it happens – has entered into the race to take over the highly popular betting company.
A handful of bidders are currently trying to outdo one another in a bid to become the owner of William Hill. There’s little wonder that this is the case, as the deal will also see the firm’s European assets sold off as well.
The William Hill brand was actually acquired by the U.S. company Caesars Entertainment in September of 2020 in a £2.9 billion deal. Yet, it was decided even back then that new owners would be sought out for its network of high street bookmakers operating in the United Kingdom. This way, Caesars (NASDAQ: CZR) will simply control William Hill’s operations in the United States and has requested an auction to be held, hiring advisers from Deutsche Bank for this.
CVC (ASX: CVC) purchased the Tipico Group back in 2016, and it is now duking it out against such brands as 888 Holdings and Betfred to try and get its hands on William Hill. Apollo Global Management (NYSE: APO) is also vying for the British bookmaker, while Advent International has pulled out of the process. Entain (LON: ENT), which currently owns Ladbrokes and recently rejected a takeover bid by MGM Resorts (NYSE: MGM), chose against submitting an offer.
According to one analyst, the eventual price for William Hill is expected to go beyond the £1.5 billion mark, considering the amount of interest that the sale has generated. If the bid by Tipico is a successful one, then CVC would be reunited with William Hill, following a period of almost two decades. The company was bought in 1999 for £825 million thanks to a unison between CVC and Cinven, prior to it being floated on the London Stock Exchange.
William Hill is responsible for over 1,400 betting shops in the UK but has found increased restrictions due to tighter regulations have dramatically reduced the revenue stream from them.
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