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888 Holdings PLC confirmed on Thursday said it will conduct an accelerated bookbuild to fund the acquisition of William Hill's non-US operations, also adding the purchase price of the deal has been cut.
The Gibraltar-based online betting and gaming company said it will conduct a non-pre-emptive placing of up to 70.8 million new ordinary shares to start immediately. The placing price for the shares will be determined after the process closes, 888 explained. The new shares represent around 19% of its issued capital.
Shares in 888 soared by 29% to 248.40 pence each in London on Thursday morning. It has a market capitalisation of £928.8 million.
At current market prices, the fundraise will be worth £175.9 million.
888 said the placing replaces its previous intention to raise around £500 million in the issue of new equity. An accelerated bookbuild is a quicker option to raise the necessary funds for the acquisition of William Hill assets, 888 explained.
William Hill International is a retail and online betting brand, now owned by Caesars Entertainment Inc after a buyout of former London listing William Hill PLC. 888 is acquiring the non-US assets from Caesars.
888 also announced the enterprise value of William Hill assets has been revised downwards to £1.95 billion to £2.05 billion from £2.2 billion previously.
888 and Caesars have amended their September purchase deal, with the cash consideration due at closing reduced to £584.9 million from £834.9 million before.
A deferred consideration of up to £100 million may be due in 2024 should certain milestones be achieved. This will be payable in cash or 888 shares.
The deal is expected to close in June this year, subject to approval from shareholders at the general meeting in May.
Debt financing of £2.1 billion from JPMorgan, Morgan Stanley, Mediobanca and Barclays Bank PLC has also been agreed to help fund the William Hill assets buy.
In addition, 888 updated on its trading in the first quarter of the year, with revenue expected between $222 million and $226 million. This would be an increase of between 0% to 2% from the previous quarter.
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