Report: Ladbrokes, bet365 and PPB file bids for William Hill Australia
Four operators said to be in the running for the takeover, with bids in the AU$200m range
Four bids have been lodged for William Hill’s Australia business, according to local news reports, with bet365, Ladbrokes, Paddy Power Betfair and CrownBet all throwing their hat in the ring.
The Australian Financial Review said the offers, thought to be in the AU$200m (£112m) region, were filed with Hills’ adviser Citigroup before a Monday morning deadline.
The bids will now be evaluated with the winning company getting a closer look at Hills’ “black box items”.
An Australian gaming analyst, who requested anonymity, told EGR he saw bet365 as the most natural buyer of the business.
He said: “The corporates market is dominated by Sportsbet and Crownbet which put a huge value on culture, which I understand is an issue in Hills Australia.
“Ultimately I think its likely 365 will buy Hills, I am very interested to see what they pay for it. So much has been invested in that business and it’s been a disaster.”
William Hill’s strategic review of the Aus business was launched back in January following a reduction in credit betting volumes and other impending regulatory pressures.
Approximately 30% of Hills’ Aus revenues came from credit betting, with the operator reportedly owed A$16m (£9m) by one punter.
The firm recently marked off a £238m impairment to the value of the business, after a slow year of trading, as net revenue fell 2%cc to A$201m (£112m), although the downturn was in part thanks to a slowdown of marketing investment as the review was carried out.
Hills said the process was expected to be concluded in the middle of 2018.