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Wm Hill says bid proposal does not reflect value

Thursday, 11th August 2016
William Hill said it continues to believe that the bid proposal by 888 Holdings and The Rank Group is highly opportunistic and does not reflect the inherent value of the group.

Moreover, William Hill said the proposal presented significant risk for its shareholders as it involves a highly complicated three-way combination at a very low premium.

"There is substantial risk for William Hill shareholders in the achievement of the estimated future cost synergies, which are only expected to be achieved in full by the end of 2020," the company said.

"It (the proposal) would result in the combined group operating with substantially increased leverage of approximately £2.2 billion, carrying a much higher interest charge."

William Hill's chairman, Gareth Davis, said:

"The Board continues to see no merit in engaging on the basis of a proposal that substantially undervalues the Group.

"In addition, as we have said before this proposal is highly opportunistic, complex and poses significant risk for our shareholders."

William Hill has given 888 and Rank until 5pm on Aug. 21 to confirm a firm intention to make an offer, or that it does not.

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Related Shares: 888 Hldgs, Rank Grp., William Hill

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