2nd Jul 2008 07:00
2 July 2008
WILLIAM HILL PLC
Sale of Italian Joint Venture company, William Hill Codere Italia Srl
William Hill PLC and Grupo Codere SA have today announced the sale of the entire issued share capital of William Hill Codere Italia Srl (WHCI) to INTRALOT Italia spa. The gross consideration agreed is €5.5m, which will be shared equally between the two shareholders.
The sale follows a strategic review of WHCI within the Italian sports betting market. The sale does not include use of the William Hill brand name.
WHCI was set up as a joint venture to enter the Italian horse and sports betting market following a tender process in Italy for sports and horse race betting in 2006 in which the company was awarded 57 licences.
The number of retail betting licences won by WHCI was insufficient in scale to provide an attractive long term return. Options to grow within Italy through the acquisition of either existing or new licences were explored, but the cost of acquisitions within the existing regulatory framework in Italy made further investment unattractive.
The sale of WHCI includes the internet betting licences secured in the 2006 tender. William Hill is still considering its options with regard to an internet offering in Italy.
This sale will result in a write off of around £1m in the Group's 2008 interim accounts after accounting for operating losses in 2007 and to the date of disposal in 2008.
William Hill PLC and Grupo Codere SA remain committed to their joint venture in Spain. The joint venture has opened in eight locations in Madrid to date, including in Canoe, the largest bingo hall in Spain.
Enquiries:
|
Ralph Topping, Chief Executive Officer |
Tel: 020 8918 3910 |
|
Simon Lane, Group Finance Director |
Tel: 020 8918 3910 |
|
Fiona Antcliffe/ Deborah Spencer, Brunswick |
Tel: 020 7404 5959 |
Related Shares:
WMH.L