The Spotify and Uber investor TPG is reportedly set to help the Greece-based casino operator Bally’s Intralot complete a takeover of the firm behind the British bookmaker William Hill.
TPG is one of the world’s biggest alternative asset management firms. In the financial world, alternative assets are holdings such as private equity and real estate.
TPG has around $306 billion in assets under management. And per Sky News, the firm is prepared to stump up around $1.1 billion to help Bally’s Intralot finalize a deal for the William Hill owner Evoke.
Unnamed sources told the media outlet that the final figure may be lower, however.
William Hill Takeover Bid: Talks Ongoing
William Hill is one of the oldest and biggest names in the UK gambling space. The firm opened its first betting shops in the mid-1930s.
Evoke also operates the 888 betting brands. However, the gambling operator has fallen on hard times. With its net debt climbing to around $2.5 billion, the firm began exploring sale options late last year.
Evoke’s market capitalization has dropped by over 50% since reaching the 2.22 billion pound ($3 billion) mark in 2021.
Share prices in the operator climbed significantly as the news hit the markets. Evoke stock is up 8.4% over the past five days, outpacing the FTSE 100 Index by over 10%.
TPG has so far refrained from commenting on the report. But Sky News sources said that the deal would involve the firm’s global credit and real estate investment platform TPG Credit.
An unnamed financial analyst told the same media outlet that TPG’s involvement “would strongly increase the chances” of Bally’s Intralot succeeding with its takeover bid.
What is Bally’s Intralot?
Bally’s Intralot is an online casino operator and lottery provider that formed in October last year when the Greek IT firm Intralot snapped up the international digital gaming division of US-based gambling operator Bally’s Corporation.
The deal saw the US firm acquire a 58% majority stake in Intralot. Just months after forming, Bally’s Intralot began exploring a deal for Evoke.
Sky News wrote that analysts see the Greece-based firm as one of a very small number of “likely suitors” who could buy Evoke outright.
Outright Sale Preferred
Evoke has also mulled spinning off and selling its profitable Italian brands. But the firm has expressed a desire for an outright sale.
Bally’s Intralot’s bid involves a $0.67-a-share buyout. That would value Evoke’s equity at just under $303 million.
Evoke’s liabilities include a $700 million bond issued last year and a revolving credit facility provided by a syndicate of lenders.
The Evoke board originally set a mid-May deadline for a takeover bid but has since extended it to June 8.
“Constructive discussions are continuing between the parties in relation to the proposal, which is expected to comprise an all-share combination with a partial cash alternative,” Evoke officials said last week.
Several big-name UK betting firms have warned they will close betting shops nationwide and lay off staff due to government tax reforms.
