Bookmaker William Hill has today announced a recommended cash offer of £242m for Swedish gaming company Mr Green & Co as it prepares for Brexit.
William Hill’s shares jumped nearly six per cent following the announcement while shares in Mr Green soared nearly 48 per cent to 68.5 Swedish krona, just short the offer price of 69 krona per share.
One of the attractions of the deal for William Hill is it provides an international hub outisde of the UK and Gibraltar that will not be impacted by Brexit.
“We get a ready to go international hub,” Philip Bowcock, William Hill’s chief executive said.
“As a part of Brexit, we have to create an international hub outside of Gibraltar operations,” he said.
The British Overseas Territory of Gibraltar has like Malta become an important centre for online gambling.
Mr Green holds remote gambling licenses in Denmark, Italy, Latvia, Malta, the UK and Ireland and expects to obtain Swedish licenses by the end of the year.
The company, which was founded in 2007 after its entrepreneurs created the character Mr Green and developed the casino site, currently operates in 13 countries.
William Hill offered a near 49 percent premium to Mr Green’s closing price of 46.5 Swedish krona on Tuesday. The deal has been recommended for approval by Mr Green & Co’s board and shareholders who own over 40 percent of the company accepted the offer.
Mr Green & Co reported strong results for the third quarter, with revenue increasing nearly 51 percent.