William Hill Hopes To Acquire Mr Green?

William Hill Hopes To Acquire Mr Green?

This week the news broke out that Britain’s betting leviathan William Hill plots a $308 million purchase of hugely popular Swedish online casino brand Mr Green. The disclosure of their plan has immediately skyrocketed Hill’s shares value by over 8%.

This possible acquisition is part of London-based operator’s wider scheme to prepare and expand its digital business in order to strengthen market position ahead of Brexit.

Green on Green

This would combine and merge William Hill with MRG’s Mr Green and Redbet brands. Moreover, the Swedish betting giant with an international pedigree would alleviate its parent company’s alliance on homeland of Britain which prepares to make its regulations even more strict.

Numerous European betting brands look to expand overseas, primarily to the United States, where curbs on betting are getting more relaxed and flexible…

…for the same reasons, and as a way of increasing their online operations’ profitability, Hills is offering to company’s investors up to $7.51 in cash per share – a 48.4% premium on closing price of $5.06 which was current up until mid-week.

Treading New Ground

As MRG and Company AB boast presence across 13 markets via trademark betting sites Mr Green, Redbet.com, Bertil.com, MamaMiaBingo and Vinnarum, the acquisition would signal a significant market boost for William Hill.

Established in 2007 with gambling licenses of the United Kingdom, Denmark, Malta, Italy, Ireland and Latvia, plus Sweden’s authorization, MRG is also tailored to the country’s new licensing law, coming into effect on January 1st, 2019.

CEO of William Hill, Philip Bowcock, comments:

“We get a ready to go international hub. As a part of Brexit, we have to create an international hub outside of Gibraltar operations.”

Unpopular Measures

British Finance Minister, Philip Hammond, has announced, while talking about the newly proposed budget, that tax on betting via offshore sites will rise from 15 to 21%.

Starting in October next year, Hill’s land-based betting shops are also facing possible maximum stakes on fixed-odd betting terminals cuts…

…and so the deal suggested by one company to another has been recommended for the board’s approval, as well as shareholders’, who have accepted the preliminary offer.

In recent weeks, Hill’s expansion in the U.S. rose to a new level as it prepares to sell no less than 82 racecourse betting pitches to a London company.

The bookmaker also had to go through the unpleasantries of having to file in a court action against FanDuel who has allegedly copied their guide on betting, “word for word”, in the greater New Jersey area.

Source:

“William Hill offers to buy Sweden’s Mr Green & Co for $308 million”, reuters.com, October 31st, 2018.

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