Bally ho!

• The statement came as a response to newspaper speculation that Bally’s Intralot was in late-stage talks to buy the owner of William Hill, 888 and Mr Green.
• The speculation was accompanied by a 31% share price surge last week

The future is uncertain: The statement added that the proposal is expected to comprise an all-share combination with a partial cash alternative. It noted there was no certainty that an offer would be made or what its terms might be.

• Evoke said it was evaluating the offer with the help of its financial advisors, Morgan Stanley and Rothschild & Co.
• It added that Bally’s has committed to making an announcement on whether it will firm up a bid or withdraw no later than 5pm on May 18.

Are you sitting uncomfortably? Bally’s Intralot said it believes a combination with Evoke would “have the potential to deliver substantial strategic and operational synergies, including enhanced scale, an expanded geographic footprint and opportunities for cost efficiencies.”

• To get comfortable with any deal, Bally’s Intralot will need to take on Evoke’s sizable £1.8bn debt pile.
• The company itself was formed in July last year when the Bally’s interactive international business merged with Athens-listed lottery backend supplier Intralot.
• The common link is majority shareholder Standard General, which is run by sector dealmaker Soo Kim.
• In forging that deal, Intralot’s net debt at the end of December stood at €1.49bn.

Double talk: Any transaction will see Bally’s Intralot double-down on its exposure to the now highly taxed UK market, adding Evoke’s online and retail exposure to its existing UK footprint.

• Effectively the old Gamesys business, Bally’s Intralot has a 94% exposure to the UK via the Jackpotjoy brand.
• Evoke launched a strategic review in December in the wake of the UK government’s Budget announcement of a substantial hike in remote gaming duty to 40%

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