Poll results: Hills to buy out Playtech's WHO share at later date
More than half of readers think option will still be exercised " only 26% believed the operator would exercise its option this week.
More than half of eGaming Review readers polled believe William Hill will exercise the call option on its joint venture with Playtech at a later date, this week’s poll has revealed.
The majority (52%) have been vindicated by today’s announcement from the operator that it is to begin a valuation process on Playtech’s 29% stake next month, with February 2013 the anticipated date for the option being exercised.
The JV was first agreed in 2008, while today it was revealed that Henry Birch “ appointed to head up William Hill Online at the time “ is to leave the operator following the conclusion of his four-year term. He will be replaced by Hills’ interim head of mobile and former strategic advisor Andy Lee.
Some 26% of those polled thought the call option would be exercised this week following speculation to that end from certain media sources, however the operator explained in today’s third-quarter IMS that “There can be no certainty that the option will be exercised. If not exercised, we have a further option right in two years’ time.”
Indeed, the remaining 22% have suggested that Hills will opt not to exercise the option, which analyst Vaughan Lewis of Morgan Stanley values at £493m.
In yesterday’s note, Lewis suggested: “Buying Sportingbet and the minority in WHO would create a global online leader.” The proposed Sportingbet takeover, a joint deal alongside GVC, is also uncertain although Sportingbet has indicated it would accept an offer of 61.1p a share, valuing the business at £530m (of which Lewis claims £455m would be paid by Hills).