Silchester Purchases Five Percent of William Hill

Silchester Purchases Five Percent of William Hill

Silchester International Investors, a Mayfair-based investment firm, has purchased 5% of William Hill, the well-known UK and Ireland bookmaker. 43.35 million shares were bought by the hedge fund managers at a price of 240p a share. To put this into greater perspective, their investment in the bookmaker is presently worth £104 million.

The investment may have come at a good time for the bookmaker. William Hill had a tough 2016. The company suffered from weaker than predicted revenues. This forced it to reduce its profit forecasts to £280 million from its previous £300 million estimates and also resulted in the ousting of its then CEO James Henderson.

Why the investment from Silchester? One of the reasons may be due to the fact that the hedge fund focuses on maximizing profits and has a track record of buying into businesses undergoing hard times. For instance, the firm has previously purchased shares in educational publisher Pearsons and supermarket giant Morrisons. Both are facing periods of financial challenges.

As for how William Hill's finances are looking at present, it seems as though the bookmaker is enjoying some better times, with a recent financial report revealing that it has experienced 3% revenue growth, with company profits boosting to £837 million for the first half of 2017. Still, the bookmaker isn't out of the woods yet. The company's profits are likely to take a beating with the expected and highly anticipated UK government crackdown on controversial fixed odds betting terminals.

Be that as it may, as it stands, Silchester's investment has made them the fourth largest institutional backer of William Hill.

About The Author

As both a player and a fan of strategy analysis in the area of online gambling, my goal is to share the latest information and news about online casinos and the games that they offer. My background was originally in writing guidebooks for the individual games, as well as for tournaments, but after a decade of that, I chose to expand my experience to writing honest, objective, and helpful articles.

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