Evoke confirmed on Monday morning that it is in talks with Bally’s Intralot for an an all-share combination, priced at £0.50 ($0.67) per Evoke share.
The proposal is expected to comprise an all-share combination with a partial cash alternative, Evoke said. The deadline for the deal is 18 May, 28 days after the announcement has been made public.
Evoke said it was evaluating the offer with its financial advisers, Morgan Stanley and Rothschild & Co.
The bid follows month of speculation after Evoke initiated a strategic review in December to explore either partial or full sale opportunities.
Bally’s Intralot has confirmed that any firm offer, if made, would be subject to customary conditions and approvals and that it reserves the right to vary the terms of any such offer, including the price, the form and mix of consideration and the structure of the transaction.
At the time it did not confirm which specific parts of its business it was exploring a sale for, but in November Sky News reported it was exploring selling off its Italian arm, to help mitigate the impact of the gambling tax hike in April.
The increase, announced in the government’s autumn budget in November, saw Remote Gaming Duty rise from 21% to 40% in the UK. Meanwhile Remote Betting Duty will also increase as from next April.
Evoke to close 200 retail shops in UK
As the RGD came into force this month, Evoke also announced the closure of 200 William Hill betting shops in the UK. The shop closures will start in May and follow a similar move from Entain and Flutter in the UK & Ireland.
In January Deutsche Bank downgraded Evoke’s shares to “hold”. Richard Huber, DB research analyst, wrote that the UK budget had “disproportionately impacted Evoke”, given its exposure to UK online.
To reflect the pending tax increase, Deutsche Bank cut its FY26 and FY27 EBITDA forecasts by 12% and 18%, respectively.
Industry stakeholders had speculated which parts of the business Evoke would sell off as part of its strategic review. Some suggested a private equity takeover could benefit the operator to help reduce its debt burden.
Speaking to iGB in February, Ben Robinson of Corfai said: “Beyond retail disposals, the real opportunity is structural cost reduction rather than short-term cuts. Operational consolidation, automation, AI-led efficiencies and selective outsourcing can deliver 10% sustainable savings without harming growth.”
Evoke’s share price hit £0.43 this morning upon the market’s opening, after closing at £0.38 on Friday.
Original article: https://igamingbusiness.com/strategy/ma/evoke-confirms-sale-talks-with-ballys-intralot/
