Caesar Entertainment (NASDAQ: CZR) is expected to start the process of selling its non-US asset, William Hill’s, in the second quarter. Among bidders, 888 Holdings is the most suited buyer, firms that want to diversify investment.
888 Holdings is an Israel-based company that is one among several suitors for William Hill’s international assets. The Las Vegas-based Caesar recently completed the purchase of a British bookmarker for $3.69 billion. Flamingo operator made it clear that its only interest was to target US operations.
William Hill assets could not only help 888 Holdings identify avenues for cost reductions, but also lead to increase earnings per share. Caesar is also selling 1, 400 William Hill’s betting shops in UK and Ireland, plus the online wagering businesses. The analyst expects that Caesar will fetch about $2 billion from the sale.
888 Holdings’ purchase of William Hill assets will be sensible given that the operator currently is only involved in iGaming and online poker. William Hill international units will exposure the company to sports betting.
Other firms likely to be in the bidding war include Apollo Global Management (NYSE: APO). The company had previously tried to acquire William Hill, Apollo has made clear its intention, acquiring the betting assets including, those located outside the US.
Betfred and Entain are also likely to be potential bidders for William Hill shops. However, that could raise regulatory concerns since both of them are already prominent operators in the UK.