In a statement to the London Stock Exchange this morning, William Hill has announced that it will not make an offer for mobile gaming specialist Probability.
William Hill, Britain’s biggest bookmaker, gave no reason for calling off talks, but sources indicate that a dispute between the company and business partner Playtech was behind the termination.
The announcement comes after weeks of discussions between the two parties. William Hill had begun talks with Probability on September 19, and recently extended its deadline to make a bid to November 14.
Despite William Hill calling off takeover talks, “the company reserves the right to announce an offer or possible offer” for Probability within the next six months if certain criteria are met:
(i) with the agreement or recommendation of the Board of Probability;
(ii) following the announcement by or on behalf of a third party of a firm intention to make an offer for Probability or Probability announces that it has received an approach in relation to a possible offer from a third party;
(iii) in the event that Probability announces a “whitewash” proposal or a reverse takeover (as defined in the Code); or
(iv) if there is a material change of circumstances.
Nick Batram, an equity analyst at Peel Hunt, said: “The deal with Probability was interesting but it was never going to be a game changer for William Hill. William Hill already has a good mobile phone offering, particularly on sports betting and its got the resources to drive forward its own mobile presence.”
Probability owns the Lady Luck brand and has a million UK customers for its bingo, poker and casino games. The company is valued at about £17 million.