Caesars revises sale of William Hill non-US Assets to 888 Holdings
Caesars Entertainment has revised its agreement to sell the non-US assets of William Hill to 888 Holdings.
This revision sees the renewed valuation of assets reaching between £1.95bn ($2.55bn) and £2.05bn; a total that is achieved through the inclusion of a £250m reduction in payment due to Caesars’ entitlement to up to £100m as deferred consideration.
In turn, this is subject to 888 attaining certain financial targets in 2023.
Following the repayment of debt and other working capital adjustments, Caesars should be in receipt of net proceeds of approximately £585m, which equates to $784m, following the closure of the transaction.
Completion of the transaction is subject to the approval of shareholders of 888 Holdings as well as regulatory approvals; in the form of representation, Caesars is using Deutsche Bank and Linklaters LLP throughout the process. It is expected that the transaction will be closed in June 2022.
Since Caesars’ foundation, its growth has seen the accumulation of new resorts, building expansions and property acquisitions. It operates primarily under the brand names of Caesars, Harrah’s, Horseshoe and Eldorado Resorts.
At the end of last year, Caesars Entertainment reported $2.6bn in revenue for the fourth quarter of 2021, which was up from $1.6bn for the prior-year period.
In addition, this year has seen Caesars Sportsbook become the official sports betting partner of the New York Mets, showing a continuation of its strategy to sponsor sporting entities.