The four investment banks that advise Caesars Entertainment Inc. and William Hill on the casino operator’s proposed acquisition of the British bookmaker will trouser a collective £165 million in fees for their work, according to documents published on Monday.
Barclays, Citigroup, PJT Partners, and Deutsche Bank will share in the above amount along with other advisers on the transaction, it became known.
Caesars tabled last month a cash offer for the legacy gambling operator that values the latter at approximately £2.9 billion. The casino operator said it was willing to pay 272p per William Hill share in cash.
Caesars also noted that it was primarily interested in the bookmaker’s US sports betting business, in which it already owns a 20% stake, and that it would likely sell its UK retail network and international business.
On September 30, William Hill’s Board of Directors “unanimously and unconditionally” recommended the transaction. The deal is subject to anti-trust and regulatory approvals as well as to William Hill shareholders voting in favor. Company investors are set to vote on the proposed takeover at a November 19 general meeting.
The deal is expected to close in the second half of 2021.
Advisers to Collect Millions in Fees and Expenses
William Hill has turned to Barclays, Citigroup, and PJT Partners to advise it on the transaction while Caesars is being advised by Deutsche Bank.
According to documents published Monday, October 26, Caesars’ costs and fees are expected to be in the region of £111 million and £124 million. Financing advice costs are estimated to be between £62 million and £75 million, financial and corporate broking advice is expected to be £16 million, legal advice is estimated at £16.2 million, accounting and tax advice at £1.2 million, public relation advice is expected to be £90,000, and other fees and expenses are estimated at £15.1 million.
Caesars has tapped Linklater as its legal adviser, Latham & Watkins as its financing legal adviser, Skadden Arps Slate Meagher & Flom as its US antitrust legal adviser, Phelps Dunbar as its US regulatory legal adviser, and Harris Hagan as its UK regulatory legal adviser.
William Hill’s expenses and fees for its advisers on the mega-deal are estimated at £41.3 million, including £34.5 million for financial and corporate broking advice, £5 million for legal advice, £1 million for public relations advise, £554,000 for other professional services, and £114,800 for other costs and expenses.
The British bookmaker has retained Slaughter and May for its legal adviser and Weil Gotshal & Manges for its US antitrust legal adviser.
It also became known earlier this month that William Hill’s top executives will be treated to bonuses of up to £2.1 million after Caesars offloads “all or substantially all” assets comprising the British bookmaker’s non-US business.
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