9th Oct 2016 08:13
LONDON (Alliance News) - Bookmaker William Hill PLC is in talks for an all-share merger with Canada's Amaya, the group confirmed on Saturday, in a deal which would create one of the world's largest gambling companies.
FTSE 250-listed William Hill and Amaya, which owns the Pokerstars business, both confirmed the deal following press speculation. William Hill said the pair are "in discussions regarding a potential all-share merger of equals".
William Hill said it has been evaluating options to boost its digital and international businesses in recent months, while Amaya has also been in the midst of a review of its business since February.
The pair said the merger would create a "clear international leader across online sports betting, poker and casino."
They added the merger would be classed as a reverse takeover under UK listing rules, as William Hill would effectively take over Amaya. Based on the respective market capitalisation of each company, the deal would create a business worth around GBP4.6 billion.
William Hill has been under pressure to avoid being the last of the London-listed bookies left on the dance floor following a surge in merger activity in the sector in the past couple of years.
Ladbrokes PLC, William Hill's arch-rival on UK high streets, is merging with Gala Coral, creating a combined company which will leapfrog William Hill as the largest bookie by high street branches in the UK.
This deal comes in the wake of mergers between Paddy Power and Betfair, creating the now-FTSE 100-listed Paddy Power Betfair PLC, and the reverse takeover of online gaming firm Bwin.Party Digital Entertainment by GVC Holdings PLC, which is now listed in the FTSE 250.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
Copyright 2016 Alliance News Limited. All Rights Reserved.
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