William Hill is set to raise an additional GBP 350 million


UK online and land gambling group William Hill plc is set to raise an additional GBP 350 million through a rights issue, reports The Times. The cash will be used to refinance the company's debt, the newspaper reports.

Chief executive officer Ralph Topping is expected to announce the fundraising this Friday with the group's annual results. The rights issue is likely to be fully underwritten by Citigroup, William Hill's financial adviser and broker.

The Times says the move is part of a wider plan to restructure the group's GBP 1.2 billion in debt. The lending arrangement expires in March 2010, but the company's banks, which include Barclays, HSBC and RBS, are expected to agree a new facility. Investors will have to forego a dividend, saving the company around GBP 70 million, but seem prepared to do this, reports the newspaper.

Investors will be encouraged by Will Hill's last statement in January in which it said current trading was going reasonably well - gross win, the amount of money staked minus what it pays back to winning punters, was up 8 percent for the previous 11 weeks against a year earlier.

Clearly the economic recession and its likely impact on the company is being closely watched. A big concern is unemployment. Citi leisure analyst Richard Taylor wrote in a research note last week that with unemployment forecast to peak at 10.1 percent in 2010 – similar to its high in the early 1990s when William Hill's shops saw a 7 percent drop in turnover – "we do not believe it is unreasonable to assume a similar potential hit to revenues in 2009 or 2010".

General Gambling News

Login to post a comment:


 
 

Click Here to register a new account

What's going on right now!

5mins ago someone from United States played Mona Lisa Jewels

Casino Community

Share this page on:
Follow LCB on:
Follow LCB

Casino Of The Month

Casino of the Month

In the last 24h

Totals

  • New Members
    23
  • Members Online
    381
  • Guests
    1,524
Highest Community Rated Online Casinos
Guts Casino
  (248 Ratings)
32 Red Casino
  (459 Ratings)
Club USA Casino
  (345 Ratings)
Mr Green Casino
  (356 Ratings)
Buzzluck Casino
  (221 Ratings)
Lucky Red Casino
  (270 Ratings)
Videoslots.com
  (219 Ratings)
Nexxedge
  (87 Ratings)
Bet365 Games
  (220 Ratings)
Raging Bull
  (140 Ratings)
NextCasino
  (221 Ratings)
CasinoLuck
  (291 Ratings)
Unibet Casino
  (197 Ratings)
Betsson Casino
  (281 Ratings)
SlotsMillion
  (138 Ratings)
Betsafe Casino
  (259 Ratings)
Redbet Casino
  (206 Ratings)
Spin Palace Casino
  (145 Ratings)
Casino Extreme
  (227 Ratings)
ComeOn Casino
  (319 Ratings)
Vera John Casino
  (230 Ratings)
Thrills Casino
  (206 Ratings)
Ladbrokes Casino
  (187 Ratings)
Slotland
  (394 Ratings)
Bet365 Casino
  (457 Ratings)
InterCasino
  (175 Ratings)
Intertops Red Casino
  (158 Ratings)
Europaplay
  (31 Ratings)
Win A Day Casino
  (420 Ratings)
Ruby Fortune Casino
  (163 Ratings)


Follow LCB on Facebook Follow LCB on Twitter Follow LCB on Pinterest Follow LCB on Google plus