William Hill and Stanley Leisure deal booked at £504m |
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Mon, 16 May 2005 12:10
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A deal between bookies William Hill and Stanley Leisure was struck today at £504m (€736.5m), wherein William Hill agreed to buy Stanley’s betting shops to surpass Ladbrokes and emerge as the biggest bookmaker in Britain.
William Hill has agreed to purchase Stanley Leisure’s 624 betting shops for £504m. These shops will enable William Hill to climb to the no.1 position in the industry from its second position, leaving Ladbrokes behind.
However, the agreement still awaits consent of the shareholders and other authorities in Britain. If the deal is approved, William Hill will have 2,237 licensed bookmaking offices in the country as against the 1,900 betting office chain of Ladbrokes.
| As anticipated, Stanley will be left with its casino division after its betting offices trading as Stanleybet are sold off. Stanley’s casino branch owns operations in London’s top gaming centres along with other 37 places cities like Bristol, Liverpool and Birmingham.
William Hill believes that Stanley’s’ betting business was “highly complementary” for its own business since Stanley’s shops would give Hill apt representation in North West England and Ireland where Hill presently has no standing.
The company said, “William Hill has significant experience of developing licensed betting offices and is confident it can upgrade and improve the quality and performance of the acquired estate over time.”
About the deal, the chief executive of William Hill, David Harding said, “This acquisition represents a rare opportunity for William Hill to substantially increase its distribution reach.”
William Hill recorded 9% increased profits of £165.5m (€241.9m) in the past financial year ending December 28, 2004.
However, shares of the company dropped 18 pence to 507 whereas Stanley Leisure’s stock increased 5 pence to 527.
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