Hills triggers Playtech stake valuation process
Software partner confirms "receipt of formal notification" by William Hill plc that it is triggering the valuation process for William Hill Online.
William Hill has given Playtech formal notice it has triggered the valuation process of its joint venture partner’s 29% stake in the online business.
Playtech this morning issued a statement to the stock market confirming “the receipt of a formal notification by William Hill plc that it is triggering the valuation process for William Hill Online as part of its right to exercise its call option over Playtech’s 29% stake in the business”.
On 19 October William Hill said it would begun its “contractual valuation process” of Playtech’s stake in its online joint venture business later this month. The stake is said to be worth as much as £493m according to analysts.
The process will formally end in February next year after which time it has a “short period to determine whether or not to exercise its option at the value determined by the process”, a statement read last month.
It is widely understood the company is almost certain to acquire Playtech’s high performing stake, that WHO would be integrated into the larger group and that it would continue as a Playtech licensee taking its casino, poker and bingo software and work with its mobile arm Mobenga. If not exercised, William Hill has a further option right in two years’ time.
Earlier this month during its Q3 results Playtech said its share of profit from William Hill Online was up a record 50% compared to the third quarter of last year. Its share of profit in WHO was up to 12.8m from 8.6m in Q3 last year and up 36% from the second quarter.
Speaking to eGaming Review on 7 November Playtech chief executive Mor Weizer (pictured) called WHO an “amazing business” whose capabilities are “unparalleled” in the gaming industry.
“When you combine a great brand with a great set of expertise all enabled by best of breed software this is the winning combination.
“The scale and breadth of this business positions it so well to gain market share and this has been the case in the last few years and has accelerated ever since we began working together in 2008,” he added.
“WHO is a key driver of William Hill’s overall success and, as a major supplier to WHO and the wider business, Playtech is dedicated to maintaining its close working relationship with William Hill to support its continued growth, as is the case with all of the company’s licensees,” a statement read today.
“In the event that the option is exercised Playtech is committed to the smooth handover of the 29% stake in order to ensure a seamless transition and support WHO’s growth going forward,” it added.