Caesars Entertainment is aiming to finalize the transfer of William Hill’s international assets within a twelve-month period.
The chief executive of Caesars Entertainment, Tom Reeg, has stated that the organization will initiate the process of selling William Hill’s non-US holdings in the upcoming two months. The company hopes to identify a buyer in 2021 and finalize the transaction within a year.
Caesars Entertainment agreed to purchase William Hill in September 2020 and completed the transaction last month (April 22), after a three-week delay caused by legal challenges, for £2.9 billion (€3.35 billion/$4.04 billion).
However, Caesars Entertainment has made it clear that the purpose of the acquisition was William Hill’s US gambling operations and technology, while the remaining assets of the operator, including its UK branch, will be sold.
Reeg indicated that Caesars Entertainment will commence the sale process before the conclusion of the second quarter on June 30. The company then anticipates announcing a buyer by the end of the third quarter or early in the fourth quarter, and intends to complete the transaction by May 5, 2022.
While Reeg did not disclose the anticipated sale price of William Hill’s non-US business, Chief Financial Officer Brett Yank stated that Caesars Entertainment intends to repay $2 billion in debt over the next twelve months, and the sale will contribute to achieving that objective. He mentioned that the $2 billion target assumes a conservative sale price for William Hill assets.
Reeg stated that Caesars would be making bold investments in the newly obtained operator, noting that one factor driving the agreement was that William Hill’s UK stakeholders were more likely to be cautious when it came to financial leverage.
The Caesars chief executive officer mentioned that while the operator was typically prudent in its expenditures, it was also sensible enough to recognize that it needed to invest more than it had historically. Now that the transaction is complete, Caesars can fully concentrate on promoting its offerings.
Caesars will also rebrand the William Hill enterprise under the Caesars name.
Moreover, Reeg indicated that Caesars did not seriously contemplate retaining the entire William Hill operation.
“One of the aspects I disliked most when I was an investor was companies that lacked clarity about their strengths,” he remarked. “I cannot confidently assert that we excel at managing non-US digital ventures.
“I can confidently state that there are almost certainly others who are more adept at it and perceive opportunities in that domain.
“I can allocate that capital to enterprises that I am certain will generate a higher return for investors. Consequently, we did not hesitate for a moment to divest the non-US business.”
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