William Hill plc (LON:WMH) has reached agreement with Scientific Games Corporation (NASDAQ:SGMS) to unconditionally support the US casino equipment and lottery services provider’s proposed acquisition of Canadian listed online sports betting specialist NYX (TSXV:NYX).
The FTSE 250 listed bookmaker said that, following the agreement, all the parties have withdrawn from all litigation in the US and UK.
In connection with the proposed acquisition Scientific Games has agreed to acquire William Hill's entire holding in NYX with the UK firm receiving C$2.40 a share for the 6.8mln ordinary shares it owns in NYX and around £87mln for its convertible preference shares that would in aggregate have given the Hill a 31.9% stake in NYX.
William Hill had previously announced it intended to convert its preference shares before the meeting to vote on the Scientific Games deal.
Scientific Games launched a C$775mln (US$605.5mln) offer for NYX Gaming in September and, since then, the casino equipment supplier has acquired a stake of around 36.01% in NYX in two separate transactions.
Commenting on the announcement, William Hill’s CEO Philip Bowcock said: "These agreements safeguard William Hill's technology roadmap and relationship with NYX and end all legal action between the parties.“
He said: “Additionally we are pleased to expand our commercial relationship with Scientific Games in the US market which offers considerable potential should the Supreme Court ruling on PASPA, which is expected next year, provide states with the power to regulate sports betting.”
In early trading, William Hill shares were 3%, or 8.7p higher at 300.1p, helped too by the revelation today of £3.9bn merger talks between Ladbrokes Coral Group PLC (LON:LCL) and GVC Holdings (LON:GVC) about a possible merger to create an online global betting giant.
-- Adds share price --