William Hill makes £242m bid for MRG

Published by CasinoTopsOnline on November 1, 2018 in Industry News

William Hill Casino MRG AcquisitionThe year is slowly but surely reaching its end but the online casino industry is not slowing down.  

There has been some remarkable partnerships and changes created throughout the year.  

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In most recent events the industry leading brand William Hill has placed a massive bid in hopes of acquiring the popular Mr Green online casino.

Insider scoop on the Mr Green offer 

It’s no secret that Mr Green Casino is one of the most successful online casinos in the industry. And as such its value is quite high with many making offers to acquire the gaming operator.  

William Hill has recently made a big for this Stockholm listed gaming operator, Mr Green & Co. (MRG) which values the business at up to £242 million. This offer basically equates to about SEK69 per MRG share which is considerably higher than the most recent closing price of SEK46.45 per share.  

According to William Hill this proposed acquisition would help strengthen their international business. It will provide them with access to an international hub which they can use to drive international growth with deeper operational knowledge in the new markets.  

It is believed that the acquisition will be gradually adding to the William Hill earnings from the very first year of full ownership, even before synergy benefits kick in.  

MRG operates in 13 markets across the globe with popular brands including Mr Green and Redbet Casino. The MRG brand also holds remote gambling licensed in Italy, Malta, Latvia, Denmark, Ireland and Great Britain. They are also currently waiting on licensure in Sweden.  

According to the Chief Executive of William Hill, Philip Bowcock, the proposed acquisition will accelerate the diversification of William Hill. And will immediately make them a more digital and international business.  

Bowcock stated that MRG will provide William Hill with an international hub in Malta with market entry expertise and strong growth momentum in a number of European countries. Instead of being a single brand William Hill will move to become a suite of brands which will maximise growth opportunities going forward in both new and existing markets.  

Both the MRG board of directors and investors with a combined 40.04 per cent shareholding in the company are in support of this William Hill offer.  

William Hill’s Chief Digital Officer, Ulrik Bengtsson, will have the responsibility of leading the integration of MRG within the William Hill Group. The expected cost synergies are said to be at least £6m per year by the third year after acquisition.  

Funding for the transactions will be by cash on the William Hill balance sheet or through their existing credit facilities. This will be determined by the acceptance of the MRG’s shareholders and anti-trust approvals. If the deal is successful it is expected to be completed in January 2019.  

What the future holds 

William Hill is already one of the largest in the industry and the possible acquisition of MRG could skyrocket their growth even more.  

The acquisition will be exactly what is needed for William Hill to successfully branch out internationally.  

It is unclear what the future holds but so far it seems that the deal could be done during the first month of the new year.