American casino giant Caesars has confirmed it is in “advanced discussions” to buy betting firm William Hill for some £2.9bn.
William Hill last week told investors it had had takeover approaches from Caesars and private equity giant Apollo.
Today Caesars said William Hill’s directors had indicated the offer was at a level “they would be minded to recommend to shareholders”.
The US firm said the offer would be 272p for each William Hill share.
That was a 25% premium on Thursday’s closing share price of 217.6p. But shares in William Hill surged to 312.2p at the close of play on Friday after the takeover speculation.
Caesars said that while it had completed due diligence, any deal would be likely to complete in the second half of 2021.
The Las Vegas company already owns a 20% stake in William Hill’s US operations, which also have exclusive rights to operate sports betting under the Caesars brand.
Tom Reeg, chief executive of Caesars, said: “The opportunity to combine our land-based casinos, sports betting and online gaming in the US is a truly exciting prospect.
“William Hill’s sports betting expertise will complement Caesars’ current offering, enabling the combined group to better serve our customers in the fast growing US sports betting and online market.
“We look forward to working with William Hill to support future growth in the US by providing our customers with a superior and comprehensive experience across all areas of gaming, sports betting, and entertainment.”
