Caesars Auction at William Hill Betting Shops is likely to attract 888 Holdings, Apollo
Date posted: May 1, 2021, 10:11 a.m.
Last Updated: May 1, 2021 10:13 a.m.
Caesars Entertainment (NASDAQ: CZR) fine-tuned their $ 3. 15 billion William Hill acquisitions less than two weeks ago and, as is widely expected, the gaming giant will soon bid on British bookmaker 1,400 retail stores.
The operator of a Las Vegas-based casino will put up for sale stationary locations of the British bookmaker in the coming week, reports Telegraph. The deal will also include European and UK online casinos and online sports betting. Shortly after Caesars announced its bid for William Hill last September, a competitor made it clear that it would eventually abandon operations in Europe.
Private equity firm Apollo Global Management (NYSE: APO) - defeated by Caesars in the William Hill tender - and 888 Holdings are among the likely competitors to the British firm's European assets.
Sources with knowledge on this topic speak The Telegraph Apollo has an internal track for sale because it has deeper pockets than the 888. There were rumors earlier this year that an Israeli operator of online casinos and poker clubs is itself a target for takeover, but for now remains speculation.
Apollo Logical Suitor
In addition to playing at William Hill, Apollo has been actively involved in game acquisitions in recent months.
Acquired Great Canadian Gaming Corp. (GCGC) and is working with VICI Properties to buy the Venetian and Sands Expo and Convention Center on the Las Vegas Strip for $ 6. 25 billion. In addition, the private equity firm already has assets with which William Hill's European unit could be paired.
The buying company would connect William Hill with Gamenet, the Italian gambling operator it owns, and cut costs ", according to Telegraph.
In December, Apollo paid $ 1. 15 billion to International Game Technology (NYSE: IGT) for Gamenet Group SpA - the Italian operator of digital games, slot machines and sports betting.
Due to the part, the 888 is also a logical competitor as the company is more focused on iGaming and poker, which indicates a sports betting buying could complement the existing portfolio nicely.
The Telegraph Notes that other bidders may include Betfred, although such a move could raise regulatory concerns as the company has 1, 600 UK retail outlets. Swedish operators Betsson and Kindred can get mixed up as well, as William Hill's Mr. Green unit is already popular in the country.
Defrayer for Caesars cost
Caesar, already bearing one of the greatest burdens in the gambling industry, raised $ 2. $ 03 billion to finance bridges to consolidate William Hill acquisition. Analysts believe the sale of European assets will cost at least over $ 2 billion, meaning Caesars is likely to be a motivated seller and could use the proceeds obtained.
The wrinkle may come in the form of Harrah's operator as he tries to deflate his nine UK casinos. Caesars' management has long believed that it has no interest in international markets and it would be effective to sell these properties along with William Hill's assets.
Apollo has the financial resources and operational experience to make such a transaction, but it is unclear if a private equity store wants these casinos.
Caesars reportedly came close to selling these venues to a Canadian gaming entity, but according to The Telegraph has failed this transaction.