William Hill Announces Deal With Playtech for 424 Million Pounds

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

LONDON -- The shares of William Hill  (LSE: WMH  ) climbed 19 pence, or 5%, to 423 pence during early London trading this morning after the bookmaker said it would pay 424 million pounds to Playtech  (LSE: PTEC  ) for the latter's 29% stake in William Hill Online.

William Hill said the deal would be funded mostly by a 375 million-pound fully underwritten rights issue and would give the company full ownership of the online sports-betting, casino, poker, and bingo service.

William Hill also claimed the purchase would provide the group with an opportunity to fully develop William Hill Online's future growth potential by further enhancing its products and website.

Playtech's shares fell 14 pence, or 2%, to 558 pence following the announcement.

Ralph Topping, William Hill's chief executive, said: "Having been advised of the valuation of Playtech's 29% interest, the Board has concluded that it is in the best interests of our shareholders to exercise our call option to assume full ownership of this attractive, high growth, high performing business."

Mor Weizer, Playtech's chief executive, said: "William Hill Online has been an overwhelming success and has delivered a cash return to Playtech greater than 3.5 times its original investment, excluding software royalties in the four years since inception."

William Hill Online was formed in Dec. 2008 when Playtech placed assets then worth 178 million euros into William Hill's existing interactive operations. By the end of 2012, Playtech's total share of profits from William Hill Online, excluding software royalties, has been approximately 140 million euros.

Today's deal with Playtech accompanied William Hill's full-year results, which showed sales up 12% to 1.3 billion pounds and profits up 22% to 293 million pounds.

William Hill also raised its annual dividend by 17% to 11.2 pence per share.

Based on today's results, William Hill is valued at 14 times earnings and offers a possible 2.6% dividend income.

Of course, whether today's deal and the general outlook for the online gambling industry all combine to make either William Hill or Playtech a buy remains your decision.

However, if you already own William Hill or Playtech shares and are looking for another attractive growth opportunity, this exclusive in-depth report reviews a solid possibility within the FTSE 100.

Indeed, the blue chip in question has lifted its profits by 44% since 2009, owns subsidiaries that might contain considerable hidden value, and has just been declared "The Motley Fool's Top Growth Stock for 2013."

Just click here to download the report -- it's 100% free.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2289324, ~/Articles/ArticleHandler.aspx, 10/24/2016 3:40:26 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 2 days ago Sponsored by:
DOW 18,145.71 -16.64 -0.09%
S&P 500 2,141.16 -0.18 -0.01%
NASD 5,257.40 15.57 0.30%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/24/2016 3:24 AM
PTEC $937.50 Up +8.50 +0.91%
Playtech Ltd. CAPS Rating: No stars
WMH $293.00 Down -1.70 -0.58%
William Hill CAPS Rating: No stars