Caesars Entertainment will get less for the non-US assets of William Hill.
Caesars and buyer 888 Holdings announced a revised agreement for the non-US assets of William Hill. 888 will pay between £1.95 billion ($2.55 billion) and £2.05 billion ($2.68 billion) for the assets, down £250 million ($326 million) from an earlier agreement.
The two sides struck a deal in September 2021. Caesars acquired William Hill about a year earlier and had been using the brand for its online and retail sports betting business.
“The amendments to the Sale and Purchase Agreement reflect the change in the macro-economic and regulatory environment since the announcement of the Acquisition, as well as compliance factors impacting the WH business, including actions taken as part of an ongoing review by the Gambling Commission of Great Britain,” 888 said in a statement.
Caesars is entitled to receive up to £100mm ($130 million) as deferred consideration subject to the enlarged business of 888 Holdings meeting certain 2023 financial targets.
Caesars expects to receive net proceeds from the transaction at closing of approximately £585mm ($764 million). The transaction is subject to receipt of the approval of shareholders of 888 Holdings and regulatory approvals.
Caesars expects the transaction to close in June 2022.