Apollo Believed to Be Leading Way for William Hill non-US Assets – Casino.Org News

Posted on: July 4, 2021, 01:37h.

Last updated on: July 4, 2021, 02:40h.

Private equity behemoth Apollo Global Management (NYSE:APO) is rumored to be in the pole position to win William Hills international businesses. But Entain Plc (OTC:GMVHY) could be mulling a bid, too, according to reports on the matter.

Caesars Entertainment (NASDAQ:CZR) paid about $3.7 billion to acquire William Hill earlier this year. But its widely known the Las Vegas-based casino operator wants to shed the British companys non-US assets. Caesars already commenced an auction for the UK firms 1,400 betting shops and European online gaming unit. Interested bidders must submit initial proposals by Tuesday. For now, it appears Apollo is well-positioned to emerge victorious.

It is Apollos to lose, an unidentified source with knowledge of the matter told The Telegraph.

Last year, the private equity company made a run at William Hill as a whole. But Caesars management leveraged a long-standing accord with the British company relating to US sports betting operations, saying that deal would be scrapped if William Hill opted for another suitors offer. Apollo swiftly changed direction and made clear its intent to focus on the non-US businesses.

As The Telegraph article notes, Apollo already performed due diligence on William Hill, so it has intimate knowledge of the assets Caesars is looking to sell.

Additionally, the private equity company has deep pockets and can easily afford Caesars asking price. Previously, it was rumored that William Hills international assets could fetch up to $2 billion, or perhaps more. But that figure is now believed to be around $1.65 billion.

Its believed the private equity company sees potential synergies between William Hills European operations and its other gaming holding. Thats the Italian digital gaming, gaming machine, and sports wagering assets its Gamenet Group S.p.A affiliate paid $1.15 billion to acquire last December.

Apollo is likely to face plenty of competition for the William Hill businesses. Rivals could include 888 Holdings, Betfred, Entain, and perhaps Swedish companies Betsson and Kindred. Thats because of William Hills established presence and brand recognition in that country.

With its stock soaring, the Coral and Ladbrokes owner could easily make a run at the William Hill assets. However, Entain already holds considerable market share in the UK. That means an acquisition in that region could be duplicative. and potentially raise regulatory concerns.

Sources tell The Telegraph the operator could be engaging in more of a benchmarking exercise to get a sense for what its European assets are worth. The company was approached by MGM Resorts International (NYSE:MGM) its partner on the BetMGM business in the US with an $11 billion takeover offer earlier this year. That bid was ultimately turned back.

Should Entain make a credible offer for the William Hill units, it would represent a second front on which its tussling with Apollo. In Australia, the two companies are vying for Tabcorps media and sports wagering businesses. In that competition, Entain is viewed as the leader.

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Apollo Believed to Be Leading Way for William Hill non-US Assets - Casino.Org News