By Ian Walker
Caesars Entertainment Inc. said Wednesday that it and William Hill PLC have agreed on the terms of a recommended offer for the U.K. betting company that values it at 2.9 billion pounds ($3.73 billion), as announced Monday.
Under the offer accepting William Hill shareholders will get 272 pence in cash for each share held, a 25% premium to Thursday's closing share price of 217.60 pence, the day before William Hill said that it had received the approach.
William Hill shares closed Friday at 312.20 pence.
"The William Hill board believes this is the best option for William Hill at an attractive price for shareholders," Chairman Roger Devlin said.
"William Hill's sports betting expertise will complement Caesars' current offering, enabling the combined group to better serve our customers in the fast growing US sports betting and online market," Caesars Chief Executive Tom Reeg said.
The two companies said on Monday that they were in advanced talks over a possible offer at 272 pence for each William Hill share, which the U.K. company said was "minded" to recommend to its shareholders.
Write to Ian Walker at email@example.com