(Alliance News) - Caesars Entertainment Inc on Wednesday said it has reached an agreement to acquire UK gambling company William Hill PLC for GBP2.9 billion, as part of the US gaming company's plan to expand its sports and online gaming business.
Under the terms of the agreement, Caesars will pay 272 pence for each William Hill share.
Shares in William Hill were up marginally at 274.30p each in London on Wednesday morning. The stock had closed at 274.20p on Tuesday.
The London-based company, through a joint venture with Caesars, already runs online sports betting operations in some US states and retail sports wagering in Caesars' properties in the US.
William Hill directors consider the terms of the acquisition offer to be "fair and reasonable" and have decided to unanimously and unconditionally recommend the acquisition offer to shareholders.
William Hill Chair Roger Devlin said: "The William Hill board believes this is the best option for William Hill at an attractive price for shareholders. It recognises the significant progress the William Hill Group has made over the last 18 months, as well as the risk and significant investment required to maximise the US opportunity given intense competition in the US and the potential for regulatory disruption in the UK and Europe."
Caesars Chief Executive Officer Tom Reeg said: "William Hill's sports betting expertise will complement Caesars' current offering, enabling the combined group to better serve our customers in the fast growing US sports betting and online market."
The hotel and casino operator had initially announced the offer on Monday.
William Hill on Friday last week had confirmed that it had received separate cash proposals from New York-based investment manager Apollo Management International LLP and Caesars.
By Tapan Panchal; tapanpanchal@alliancenews.com
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