Evoke’s Mega Deal With Bally’s Stays On Track Despite Delays

The proposed acquisition of evoke by Bally’s has stayed on course despite recent delays, according to sources around the present negotiations. This deal, which would see Bally’s acquire the owner of William Hill, is one of the largest pending mergers in the European gambling sector.

While the parties extended discussions beyond the original deadline, people involved in the process are confident the transaction will soon be approved. Sources told NEXT.io that the delays are largely linked to the complexity of the transaction.

Negotiations were extended shortly before the initial deadline expired, with a new target date set for 8 June. “You need space with investors, with shareholders – there is a number of things that you must do. So, I don’t see anything strange in them extending the deadline,” one investment source told NEXT.io.

Shareholders Face Questions Over Valuation

The proposed offer values evoke at approximately £225m based on a reported price of 50p per share. That figure has raised concerns among some investors, given its historical valuation.

Industry publication Earnings+More has suggested the Shaked family, which founded evoke, might impact the approval process. This follows their prior attempt to explore a private equity-backed offer for the business.

Evoke’s reported £1.8bn debt burden is at the centre of discussions. Any acquisition structure must address the debt repayment, though the business’ assets are currently valued below it.

Recent reports have suggested private equity firm TPG is preparing up to £800m in financing support to help manage debt obligations following a merger.

Special Purpose Vehicle Structure Emerges

One possible solution under discussion involves the use of a Special Purpose Vehicle (SPV), according to reports in the Greek business press.

Under this structure, the SPV would receive priority access to dividend distributions generated by the combined business.

The objective would be to isolate evoke’s debt obligations from Bally’s balance sheet and reduce financial risk for the acquiring company. Official details have not been confirmed.

Debt Structure Raises Investor Concerns

One source questioned how much capital would remain available for investment and future growth once priority obligations are met.

“The first one that would need to be paid is going to be the SPV,” the source – who spoke under condition of anonymity – told NEXT.io. “Even if you spread the interest over 20 years, it is simply not a small number.”

“It feels like a well-engineered transaction between banks rather than between operators. If you are an operator, it looks like some bank with a smart idea.”

Negotiations continue as stakeholders work toward a final agreement ahead of the revised deadline.

Evoke’s pending merger with Bally’s is one of the most anticipated mergers in the European gambling sector. However, there are different factors stalling the deal, such as evoke’s $1.8bn debt and the current valuation. Hopefully, an agreement can be reached soon.