Evoke's Intralot Takeover Talks Extended Three Weeks

Talks over a potential £225 million (US$299.8 million, 1£=US$1.33) takeover of William Hill's parent company Evoke have been extended for a further three weeks. The announcement came just before the 5 p.m. deadline May 18 for Bally's Intralot to make a firm offer for Evoke or walk away from the deal. Evoke announced last month it was in discussions with the Athens-listed lottery and gambling operator over the offer, which was priced at 50 pence per share and expected to comprise an all-share combination with a partial cash alternative. The company said on Monday that "constructive discussions" were continuing and that its board had agreed to Bally's Intralot's request for an extension until 5 p.m. on June 8, with the option of a further extension if desired. The statement added that Bally's Intralot reserved the right to vary the terms of any offer, "including the price, the form and mix of consideration and the structure of the transaction". Bally's Intralot is due to release its preliminary results for the first quarter of 2026 May 19. Evoke was formed when what was then 888 Holdings completed the £2 billion acquisition of William Hill's UK business from Caesars Entertainment in 2022 and is burdened with considerable debt as a result, amounting to around £1.86 billion (US$2.5 billion) at the end of last year, according to the company's annual report published April 30. The annual report sets out that Evoke has a £200m revolving credit facility maturing in January 2028, two tranches of debt maturing in July 2028 totaling £769m, with further fixed notes maturing in 2030 and 2031 totaling £400 million and £505 million, respectively. The terms of the revolving credit facility set out that it will become repayable in January 2028 if the majority of the July 2028 debt has not been refinanced by that date. The group, which also includes the 888 and Mr Green brands, has been carrying out a strategic review following the budget last November, which hit online gaming operators with a near doubling of remote gaming duty to 40% and came into force last month. Although the tax rises spared betting shops, Evoke last month announced it was set to close around 200 shops, citing the financial blow from the budget as one of the main reasons behind the decision. Any acquisition would mean Bally's Intralot moving into betting shops for the first time. The company's chief executive Robeson Reeves told analysts last month that he thought it was "important to have presence in retail". Bally's Intralot was created last autumn, when Intralot acquired the international digital gaming arm of United States gambling giant Bally's in a deal worth €2.7 billion. Bally's became the majority shareholder in Intralot after the deal was completed.