Evoke, owner of William Hill and 888 betting brands, has confirmed it is considering a takeover offer made by Bally's Intralot. The deal proposes a market capitalization valued at around £225 million ($303.75 million), considering the £0.50 ($0.675) per share bid.
Key Takeaways
- Evoke, formerly known as 888 Holdings Inc., is evaluating a potential £225 million takeover offer from Bally's Intralot.
- The proposed deal would involve an all-share structure with a partial cash option.
- Evoke's £1.8 billion debt position remains a central factor in any acquisition decision.
Bally's Intralot must either confirm its intention to proceed or withdraw by May 18 unless an extension is granted under takeover rules.
Should a deal materialize, the offer would cover the entire issued and to-be-issued share capital. Bally's would retain the flexibility to adjust the structure, including pricing and the balance between shares and cash. Evoke urged shareholders to take no action at this stage, noting further updates will follow if discussions progress.
Bally's Intralot indicated that the merger could positively affect not only the operational aspects but also the finances. Larger scale, wider geographical presence and cost efficiency were identified by the parties as key drivers.
CEO Robeson Reeves claimed that its business model can be effective at a larger scale, with margins expected to grow following the merger.
The financial situation at Evoke could be an obstacle. It's currently holding net debts worth around £1.8 billion ($2.43 billion) or almost five times its EBITDA.
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Retail closures reflect wider restructuring pressure
While the process of takeovers proceeds, Evoke is also implementing plans to shut down some 200 betting shops in the U.K., accounting for around 15% of the retailer's network.
Closures are planned to begin in May and will become part of a wider effort to save costs and improve efficiency. This is driven by the increased financial strain due to higher gambling taxes mentioned in the Autumn Budget of the U.K.
Alterations to the Remote Gaming Duty have come into force recently, while changes to the Remote Betting Duty are set to occur in April 2027. These shifts have raised operating costs across the sector.
Evoke operates around 1,300 retail outlets nationwide. The company said closures will focus on locations deemed unsustainable, while maintaining investment in stronger sites. Support measures are being offered to affected employees.
Analysts have already revised expectations downward. Its forecasted EBITDA has been reduced by 12% for this year and 18% for 2027. Its EPS is estimated to fall sharply because of the leverage effect, whereas its online presence in the U.K. will develop at a moderate pace.
Industry-wide impacts are emerging. Other operators, including Betfred, Entain and Flutter, have also reduced retail exposure in response to declining shop performance and rising costs.
