* 888 to buy William Hill's non-U.S. business from Caesars
* Expects savings of at least 100 mln stg/year from the deal
* Deal classed as reverse takeover as per UK's listing rules
(Adds detail, background)
Sept 9 (Reuters) - 888 will buy William Hill's
non-U.S. assets for 2.2 billion pounds ($3.03 billion) from U.S.
casino group Caesars in a deal that will give the online
betting group access to 1,400 betting shops across Britain.
The purchase, 888's largest since it listed in London in
2005, will also give the company access to William Hill's 2
million active UK customers at a time when pandemic curbs have
spurred record online gambling volumes.
Caesars bought William Hill for 2.9 billion pounds earlier
this year as part of a wider consolidation in the gambling
industry. U.S. gaming companies have been buying up
London-listed groups to gain more expertise as the United States
opens up to sports betting.
"We have found an owner for the William Hill business
outside the U.S. which shares the same objectives, approaches
and longer-term ambitions of that business," Caesars CEO Tom
Reeg said on Thursday.
888's shares, which have gained nearly 40% so far this year,
were down around 1% by 0719 GMT.
888, with a market value of 1.5 billion pounds, has obtained
debt financing of about 2.1 billion pounds from J.P. Morgan
, Morgan Stanley and Mediobanca to fund
the deal, which is deemed as a reverse takeover as per UK's
listing rules.
The transaction includes 0.7 billion pounds relating to the
assumption of existing William Hill bonds, 888 said.
888 said it would raise about 500 million pounds through a
share sale, adding that it expects cost savings of at least 100
million pounds per year from the purchase.
The Times reported earlier this week that 888 had outbid
Apollo for the William Hill assets. 888 said it has
received unconditional support for the deal from its largest
shareholder, the Dalia Shaked Trust. The trust holds roughly 23%
of the company.
($1 = 0.7261 pounds)
(Reporting by Muvija M and Chris Peters in Bengaluru; Editing
by Shounak Dasgupta and Jane Merriman)