Hills-Playtech call option approved at EGM
Some 99.93% of William Hill shareholders approve the acquisition of Playtech's stake in William Hill Online.
William Hill’s acquisition of Playtech’s 29% stake in the operator’s online JV has received near-unanimous approval from shareholders at an extraordinary general meeting.
Hills and Playtech had finalised a £423.75m price for the stake earlier this month following an independent valuation process, while agreeing to continue a software licensing deal with CEO Ralph Topping describing the former JV partner as a “key software supplier”.
Some 99.93% of shareholders approved the acquisition at yesterday’s EGM, and Topping (pictured) said “We are pleased to have received such clear shareholder support for this transaction.
“Taking full ownership of William Hill Online is an important strategic step for William Hill as we continue to develop our online business, which plays a key part in our growth strategy,” added the CEO.
The bulk of the £423.75m outlay (£375m) will come through the issue of new shares, with the remainder being taken from the Bridge Credit Facility of 2012, which was set up with a view to the acquisition of Sportingbet’s Australian and Spanish businesses.
Payment for the stake is anticipated next month, however if it is not completed by 30 April then a second call option on the 29% stake – set for 2015 – will also be automatically terminated.
Since first announcing the joint venture with William Hill, Playtech has received a 3.5x return on its initial investment, and chief executive Mor Weizer said earlier this month “William Hill Online has been an overwhelming success”.
Following the announcement that Hills would acquire Playtech’s stake, the software provider has entered into a multi-year agreement with Ladbrokes which will the operator take on software and advisory services from Playtech.