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888 launches capital raise to fund acquisition of William Hill | business news

Online gaming group 888 Holdings will launch a cash call this week to fund its acquisition of William Hill’s non-US operations, in a rare capital raise in the London market since Russia’s invasion of Ukraine.

Sky News has learned that 888 will announce its plans on Thursday morning, a month after the full-year results were released.

The capital increase is expected to be completed through an accelerated bookbuild, meaning that it can be completed faster than a more conventional rights issue would allow.

However, shares of 888 have fallen sharply since the £2.2 billion takeover of William Hill International – which includes its UK betting shops – was announced last September.

That means the company has to issue significantly more shares to raise the same amount than it would have done seven months ago.

At Wednesday’s closing price of 192p, 888 had a market cap of £777m.

The company previously said it would raise about £500m by issuing new shares.

888 has pitched the deal to investors, emphasizing the fact that it will create a more diversified revenue base across different countries, with leading positions in the UK, Italy and Spain.

The two companies will also complement each other, executives said at the time, because William Hill has a strong presence in sports betting while 888 has a strong presence in online casino and poker.

JP Morgan and Morgan Stanley, the US investment banks, are working on the cash call for 888, which declined to comment Wednesday night.

888 launches capital raise to fund acquisition of William Hill | business news

Source link 888 launches capital raise to fund acquisition of William Hill | business news

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