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%.
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.
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.
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 – 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.
The Athens-based company has until 5 p.m. London time on May 18 to announce a firm offer or walk away.
Source: Reuters.com