The four investment banks advising Caesars Entertainment Inc. and William Hill on the proposed acquisition by the casino operator of the British sportsbook will pay a total of £ 165 million in fees for their work, according to documents released Monday.
Barclays, Citigroup, PJT Partners and Deutsche Bank will share the above amount along with other advisers in the transaction, it emerged.
Caesars last month submitted a cash offer to the legacy gambling operator that values the latter at approximately £ 2.9 billion. The casino operator said he was willing to pay 272 pence per William Hill share in cash.
Caesars also noted that it was primarily interested in the sportsbook business of the bookmaker in the US., in which it already owns a 20% stake, and which would likely sell its UK retail network and international business.
On September 30, the William Hill Board of Directors recommended the transaction “Unanimously and unconditionally.” The deal is subject to regulatory and antitrust approvals, as well as a vote by William Hill shareholders. The company’s investors are ready to vote on the acquisition proposal at a general meeting on November 19.
The deal is expected to close in the second half of 2021.
Advisors to raise millions in fees and expenses
William Hill has turned to Barclays, Citigroup and PJT Partners to advise you on the transaction, while Deutsche Bank advises Caesars.
According to documents released Monday, October 26, Caesars costs and fees are expected to be in the region of £ 111 million and £ 124 million. Financial advice costs are estimated at between £ 62 million and £ 75 million, corporate brokerage and financial advice is expected to be £ 16 million, legal advice is estimated at £ 16.2 million, accounting and tax advice at £ 1.2 million, the public relations advice is expected to be £ 90,000 and other fees and expenses are estimated at £ 15.1 million.
Caesars has chosen Linklater as its legal counsel, Latham & Watkins as its financial counsel, Skadden Arps Slate Meagher & Flom as its US antitrust counsel, Phelps Dunbar as its US regulatory counsel, and Harris Become your Regulatory Legal Advisor in the UK.
William Hill’s expenses and fees for his advisors in the mega-deal are estimated at £ 41.3 million, including £ 34.5 million for corporate brokerage and financial advice, £ 5 million for legal advice, £ 1 million for public relations advice, £ 554,000 for other professional services and £ 114,800 for other costs and expenses.
The British sportsbook has hired Slaughter and May as legal adviser and Weil Gotshal & Manges as antitrust legal adviser in the US.
It also emerged earlier this month that senior executives at William Hill will receive bonuses of up to £ 2.1 million after Caesars divested “all or virtually all” of the assets that make up the British sportsbook’s business outside the United States.