Report: 888 rejected £700m takeover offer from Playtech in July
Sources close to Playtech suggested the move could have seen the FTSE 250 firm hive off its B2B business following the acquisition
888 reportedly turned down a £700m takeover offer from Playtech in July on the basis that it “undervalued the firm”.
According to a report by The Sunday Times, the FTSE 250 firm submitted a written approach for the London-listed operator at a price of 156p a share.
888’s share price had fallen to 70.6p as of Friday 1 December, from a July peak of 110.4p. However, following the weekend’s reports, the company’s stock has shot up almost 19% in early morning trading today, 4 December, to 84p.
The jump in 888’s stock now sees the company valued at £376.8m at the time of writing.
Playtech’s bid, according to sources speaking to The Sunday Times, involved combining 888 and William Hill’s B2C brands with Playtech’s Snaitech operations in Italy, before hiving off Playtech’s existing B2B division as a separate company.
The report also suggested that Playtech has already identified up to £170m in possible savings from integrating the businesses.
Playtech, which has a current market cap of £1.3bn, has been in the market for acquisitions this year after bidding for Italian operator SKS365.
However, that bid was ultimately trumped by Lottomatica after it snapped up SKS365 in a deal worth €639m.
News of Playtech’s bid comes a month after it was reported that DraftKings had discussed a potential offer for 888 with the firm’s shareholders in June and July.
The Financial Times had reported that the US operator had eyed up swopping for 888, but those discussions ultimately failed to materialise into anything concrete.
Playtech and DraftKings’ reported bids over the summer were joined by an attempted takeover from FS Gaming, with the investor looking to place former GVC boss Kenny Alexander at the top of the business.
Following those failed takeover bids, 888 will be looking to 2024 as a period of growth under the tutelage of new CEO Per Widerström.
Widerström officially joined the firm in October and has settled in well, with the former Fortuna Entertainment Group chief having snapped up a 1.1 million shares, signalling his confidence in the company.
With plans to focus on core markets including the UK and Italy, as well as exploring growth opportunities in Africa and Latam, the operator heads into 2024 having reported a 10% dip in Q3 revenue to £405m.
888 declined to comment when approached by EGR, while Playtech has yet to respond.