Evoke, the London-listed gambling company that owns both William Hill and 888, is currently engaged in discussions with Bally’s Intralot regarding a possible acquisition valued at approximately £225 million ($303.88 million).
The proposed offer of 50p per share signifies a nearly 29% premium compared to Evoke’s closing price last Friday, resulting in a nearly 16% surge in the company's share value following the announcement. Evoke has indicated that the proposal may involve an all-share merger with a partial cash option, but it also stated that there is “no certainty that an offer will be made or the terms of any potential offer.”
According to London takeover regulations, Bally’s Intralot must declare its intentions to either proceed or withdraw by 5 p.m. London time on May 18.
Evoke revealed the ongoing discussions after media speculation and its efforts to reassess its strategic direction. In December, the company enlisted advisors, including Morgan Stanley and Rothschild, to explore various options aimed at “maximizing shareholder value,” which may include a potential sale.
Previously known as 888 Holdings, Evoke acquired William Hill’s retail network of approximately 1,400 betting shops in a £2.2 billion deal four years ago. Since that acquisition, the company's share price has plummeted by around 90%, resulting in a market capitalization of approximately £175 million and net debt of about £1.8 billion.
This year, Evoke announced plans to close around 200 William Hill locations starting in May as part of its cost-cutting measures.
Recent tax hikes in the UK have impacted operators with substantial domestic exposure. The tax on online gaming increased from 21% to 40%, while online sports betting duty rose from 15% to 25% in April, excluding horse racing.
CEO Per Widerström previously noted that these changes could cost the business up to £135 million annually. The company also retracted its financial outlook in January while continuing its strategic review.
Evoke has encountered regulatory and operational hurdles in recent years. In 2022, it agreed to a £9.4 million penalty due to compliance issues. Earlier in 2017, the UK Gambling Commission imposed a £7.8 million fine after over 7,000 self-excluded customers managed to access their accounts.
In 2023, the firm removed its CEO and suspended VIP accounts in the Middle East amid an internal investigation related to anti-money laundering practices.
Bally’s Intralot, listed in Athens and operating in 40 regulated markets, has been ramping up its presence in the UK online gaming sector. Following a €2.7 billion deal involving Intralot, it has become part of a broader corporate structure and is linked to Bally’s Corporation, its majority owner after acquiring Bally’s International Interactive business.
The potential merger would integrate Evoke’s UK retail and online assets with Bally’s Intralot’s international operations, pending regulatory and shareholder approvals.