William Hill UK business set to be sold after Caesars agrees £2.9bn takeover

William Hill have agreed a £2.9 billion takeover by Caesars Entertainment – although further deals are on the cards as the American casino giant looks set to sell off the bookmaker's businesses outside the US.

Hills had said on Monday they were "minded" to accept the offer from the owner of Caesars Palace in Las Vegas, which already holds a 20 per cent stake in William Hill's operation in the US and is seeking to exploit the burgeoning sports betting market there.

They revealed last week that they had received takeover proposals from both Caesars and private equity giant Apollo, but Caesars appeared to have shut out the rival bid when it announced it would terminate aspects of the joint venture with Hills in the US should Apollo's bid prevail.

William Hill chairman Roger Devlin said the company's board believed the Caesars bid, which is subject to shareholders' approval, was the best option, "at an attractive price for shareholders".

He added: "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.

"Under the revitalised senior leadership team, William Hill has been delivering on its strategy and potential. William Hill is one of the world's leading betting and gambling companies, with a long and proud heritage.

"It is one of the most recognised brands globally. Over recent years, it has transformed from a business once heavily reliant on UK retail into a company that is truly diversified by geography and channel, providing a stable standalone platform for future growth."

Caesars said its strategic focus was on the "opportunities immediately evident in the US market" and that it was their intention to find "suitable partners or new owners for the non-US businesses of William Hill", a move it would implement "in the short term following completion of the acquisition".

William Hill, who were founded in 1934, operate around 1,400 betting shops in the UK and employ around 8,000 people.

William Hill chairman Roger Devlin: 'Employees will be kept informed'

Devlin added: "For now, it is very much business as usual. Employees will be kept fully informed through this process. In terms of our UK and international businesses, we believe they have a strong future ahead and we will work with Caesars to find suitable partners to further the long-term growth prospects of these businesses."

Caesars has said the takeover could result in it generating between $600 million and $700m in revenues from sports betting and online gaming next year.

The US company's chief executive Tom Reeg said: "William Hill's sports betting expertise will complement Caesars' current offering, enabling the combined group to serve our customers in the fast-growing US sports betting and online market.

"We look forward to working with William Hill to support future growth in the US by providing our customers with a superior and comprehensive experience across all areas of gaming, sports betting, and entertainment."

William Hill's share price closed up 1.39 per cent at 278p on Wednesday.

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