£800m Funding Turn May Shape Evoke’s Takeover Future

Key Points

• TPG Credit is said to be discussing a financing package that may reach £800 million to help refinance Evoke’s borrowings, which could support Bally’s Intralot’s proposed £225 million takeover bid.
• Evoke has about £1.86 billion in debt, with facilities and notes due between 2028 and 2031, so refinancing has become a key part of any deal plan.
• Takeover talks now run until 8 June after constructive talks, and analysts think TPG’s capital access may raise the chance of a completed deal.

Bally’s Intralot’s proposed £225 million bid has drawn attention, but the offer has not been the main worry. The bigger issue has been Evoke’s debt load, which still hangs over the company and the deal. Because of that, focus has moved to refinancing and whether it can give the deal a base to continue.

Funding Support Appears While Takeover Talks Move On

A reported financing package of up to £800 million is now giving a new push to Bally’s Intralot’s proposed purchase of Evoke. Evoke is the gambling group behind William Hill, 888 and Mr Green. Reports say private equity group TPG may support the transaction through its credit arm, TPG Credit. Discussions are believed to focus on refinancing Evoke’s debt duties, which have become one of the biggest points in the takeover talks. One source said TPG Credit could provide as much as £800 million in financing, though the final amount may be lower.

Those talks aim to help reshape and refinance borrowings that remained important for Evoke after its growth through major acquisitions. It could also make the deal economics more comfortable for Bally’s Intralot.

Why Evoke’s Debt Now Controls the Deal Question

The focus on funding links closely to Evoke’s financial position after years of gambling industry consolidation. The company was formed after 888 Holdings, as it was then known, completed the £2 billion purchase of William Hill’s UK operations. That purchase came from Caesars Entertainment in 2022. The deal gave Evoke more scale, but it also left the business with heavy borrowing.

By the end of last year, Evoke reported debt of about £1.86 billion. Several maturities sit inside that debt structure. A £200 million revolving credit facility remains available until January 2028. Alongside it, two debt tranches worth £769 million mature in July 2028. Other obligations include fixed notes of £400 million due in 2030 and £505 million due in 2031.

A condition linked to the revolving credit facility also adds pressure. Under the facility terms, it becomes repayable in January 2028 if most of the July 2028 debt has not been refinanced by then. That leaves management needing long-term funding plans before the deadlines arrive. Debt is not the only problem.

Changes in the UK gambling tax setting have added another layer of difficulty. Remote gaming duty rose from 21% to 40% in April. General betting duty on online betting revenue is also set to rise from 15% to 25% from April next year. Higher tax costs may add pressure on profit and cash generation, which makes financing choices matter even more.

How is the Takeover Proposal Built?

Takeover talks became public on 20 April, when Evoke confirmed talks with Bally’s Intralot over a possible acquisition. The proposal is valued at about £225 million. That value is based on an indicative offer of £0.50 per share. The deal would likely be set up as an all-share combination with a partial cash alternative. One point has remained important during the negotiations. The proposal covers the company’s issued and to-be-issued share capital, not direct responsibility for Evoke’s debt obligations.

That difference explains why refinancing talks are so central to the wider deal. The acquisition proposal deals with ownership, but the debt still needs its own answer. Earlier reports this year had already suggested that Evoke might look at strategic alternatives.

Industry talk about a possible sale had also moved around before the formal announcement.

Talks Continue After Deadline Moves

The talks gained more time after the first timetable was delayed. Both sides first had a 5 pm deadline on 18 May to reach an agreement. Only minutes before that deadline ended, the timetable was extended after Evoke described the talks as constructive.

The new deadline gives both companies until 8 June to decide if a formal transaction can be agreed. At the same time, the extension suggests that key matters, including financing, still need to be settled.

The Plan Behind Bally’s Intralot’s Bid

For Bally’s Intralot, the proposed acquisition is more than a simple growth move. The Athens-listed company came together last autumn after Intralot bought Bally’s international digital gaming division. That transaction was worth €2.7 billion. Adding Evoke would grow the group’s online gambling presence in a major way. It would also give the group entry into betting shops for the first time.

Bally’s Intralot Chief Executive Robeson Reeves has explained the operating chance he sees in the business. Reeves said the company has built a business with a margin profile that stands apart in the industry. He also said Evoke has scale. Reeves said the group sees a strong chance to bring its operating model into a much larger business. He added that Bally’s Intralot sees potential to transform financial performance through the major synergies it believes it can deliver.

Reeves said the company is pursuing the opportunity with conviction.

Market Response Shows Care and Hope

Reports about TPG’s possible role have already changed investors’ feelings. After news of the financing talks came out, Evoke’s share price moved up. Shares traded around £0.41 after the reports appeared. They were also nearly 20% higher than the previous five trading days. Even after that rise, the market price remains below the proposed £0.50-per-share offer. Before the latest news, shares had closed at 37.9p. That gap suggests investors still remain cautious about whether the deal will be completed.

Investors seem to understand the strategic reason for the proposal. Even so, they still see risk around execution, financing and regulation. Evoke, Bally’s Intralot and TPG have not made public comments on the financing reports.

Expert Analysis: What This Means for Operators and the Gambling Sector?

As talks move forward, financing seems to carry more weight than valuation. Bally’s Intralot’s interest in Evoke is already clear. The harder task is adding a business with almost £1.9 billion of debt while taxes rise and regulations tighten.

If refinancing succeeds and the acquisition goes ahead, larger operators may feel more able to attempt complex, debt-heavy deals. That could happen even with higher funding costs and tax pressure.

Failure could show a more restricted setting for future mergers and acquisitions in the sector. Bally’s Intralot would be one of the clearest possible winners, as it would gain scale and retail exposure. Evoke shareholders could also benefit if a premium transaction is completed. Credit providers may benefit as well by taking part in a major refinancing opportunity.

These include refinancing execution, debt servicing costs, integration risk and the long-term impact of higher UK gambling taxes. A credible refinancing framework is likely to decide the future of this transaction. It may also shape how strongly the gambling industry pursues consolidation in the coming years.