logo
Share SHARE
FONT-SIZE Plus   Neg

FT: William Hill To Start Talks With Playtech To Salvage Online JV

UK-based gaming and betting services provider William Hill Plc (WMH.L) will start talks with Playtech Ltd. (PTEC.L) on whether to salvage their online joint venture William Hill Online, after relations between the two companies broke down last year, the Financial Times reported Sunday.

Playtech, a provider of software and content to online and land-based gaming industry, has been William Hill's online partner after it acquired a stake in WHO for 250 million euros in 2008.

The stake was acquired by Playtech in return for providing the software for online casino and poker games to lure customers to WHO. Playtech owns 29 percent of WHO.

According to the FT report, William Hill and Playtech will now start talks, seeking to either end their joint venture or find "a third way". William Hill is reportedly seeking to gain strategic control over WHO by ending Playtech's veto over acquisitions.

In November 2011, William Hill announced that it does not intend to make a takeover bid for Probability plc (PBTY.L), after reportedly being vetoed by Playtech.

The FT report noted that William Hill also intends to obtaining a commitment from Playtech not to work with its rival Ladbrokes plc (LAD.L).

William Hill confirmed in March 2011 that it took an interim injunction to prevent Playtech from selling its stake in WHO, following a court hearing. In November this year, William Hill has the opportunity to activate a call option to end the joint venture, by buying out Playtech's stake.

WMH.L closed Friday's trading on the LSE at 239.20 pence, up 4.00 pence or 1.70 percent on a volume of 2.46 million shares. PTEC.L closed trading at 312.54 pence, up 1.29 pence or 0.41 percent on a volume of 0.54 million shares.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
TerraForm Global, Inc., an operator of clean energy power plants, said Monday that it has signed an exclusivity agreement with Brookfield Asset Management Inc. to negotiate a potential business combination between them. Shares of TerraForm Global are gaining more than 6 percent in pre-market activity following the announcement. Fast food giant McDonald's Corp. (MCD) on Monday reported a 1 percent decline in profit for the fourth quarter from last year on lower revenues due to the impact of refranchising. However, both revenue and earnings per share beat analysts' expectations. The Oak Brook, Illinois-based hamburger chain... U.S. authorities are investigating Yahoo Inc. for not disclosing the two massive data breaches sooner to investors, the Wall Street Journal reported, citing people familiar with the matter. It is expected that such a move could help clarify the timeline for companies to reveal such hacks.
comments powered by Disqus
Follow RTT