UK-listed online gaming operator 888 has terminated discussions regarding a possible offer for the company by William Hill, citing a significant difference of opinion over the value of the company with a key 888 stakeholder.
888, recently awarded casino operator of the year at the Gaming Intelligence Awards 2015, announced last Tuesday that it had received an approach from the UK bookmaker.
The company warned at the time that there was “no certainty that any firm offer would be made nor as to the terms on which any firm offer might be forthcoming.”
In a statement Monday, 888 confirmed that William Hill had made a bid of 200 pence per share plus a 3 pence dividend for the company, valuing the operator at around £719.5m.
“The board of the company and the representatives of the principal shareholder trusts, together with their respective advisers, have had a number of discussions with William Hill and its advisers concerning a possible recommended offer,” 888 said in a statement this morning.
888 revealed that due to a significant difference of opinion on value with a key stakeholder, believed to be the Shaked family, it has not been possible to reach agreement on the terms of a possible offer and the company’s board has agreed with William Hill to terminate discussions.
“The company is in good health and continues to trade comfortably in line with expectations,” said 888 CEO Brian Mattingley. “The company will announce its full year results on 24 March 2015 and the board of the company looks forward to the future with confidence.”
Shares in 888 Holdings plc (Co. Data) (LSE:888) fell by 16.84 per cent to 142.00 per share in London Monday, while shares in William Hill plc (Co. Data) (LSE:WMH) were up marginally by 0.5 per cent to 383.90 pence.