Caesars earns scheme court approval for William Hill takeover

Caesars Entertainment has been cleared to complete its £2.9bn takeover of William Hill after judges in the High Court of Justice in England and Wales approved the deal. A scheme hearing on the deal took place on 31 March, one day later than initially scheduled to allow for testimony from Hills shareholder HBK investments, which questioned whether shareholders had been misled over the terms of the US JV arrangement between Caesars and William Hill. William Hill’s share price rose to £2.77p per share in the intervening three-week period, an amount above Caesars original offer price of £2.72p per share. Prominent city hedge funds including Melqart, Sand Grove and TIG are understood to have inked share acquisitions as a means of making additional profits by betting on the spread. However, judges have today formally sanctioned the takeover scheme arrangement. William Hill chairman Roger Devlin welcomed the approval of the deal by the court and stressed the longer term benefits for Hills shareholders. “Throughout this process we have said that this deal provides shareholders with a cash price that fairly balances both the exciting opportunities and risks inherent in the business and delivery of its strategy,” Devlin said. “I would like to pay tribute to William Hill’s revitalised senior leadership team and all our employees. “They have delivered on important parts of its longer term growth strategy to realise the  brand’s potential. The company is in excellent shape and looks forward to the future with confidence,” Devlin added. Applications have already been made to suspend trading in William Hill shares on the London Stock Exchange, with the last formal day of trading expected on 21 April. All trading in Hills shares will be halted a day later. Caesars has confirmed the scheme will become effective on 22 April when a copy of the court order is delivered to the UK Registrar of Companies. William Hill shares will then be de-listed from the premium listing segment of the Financial Conduct Authority’s official list and the London Stock Exchange by 8am on 23 April. Caesars has made no secret of its ambition to carve up the William Hill empire by selling off Hills’ international business and retaining the higher growth US operations. In March, Hills CEO Ulrik Bengtsson said he was “absolutely” committed to remaining as CEO of the business following the takeover. Bengtsson, along with CFO Matt Ashley, will receive a cash payment of 200% of their respective annual salaries when the deal completes.