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UPDATE 1-William Hill exits Australia, to sell unit to CrownBet

Published 06/03/2018, 07:11 pm
Updated 06/03/2018, 07:20 pm
© Reuters.  UPDATE 1-William Hill exits Australia, to sell unit to CrownBet
WMH
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TSGI
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(Adds details of deal, background)

March 6 (Reuters) - British bookmaker William Hill Plc WMH.L said on Tuesday it agreed to sell its Australia businessto a unit of CrownBet for an equity value of A$313.7 million($243.6 million) as a ban on credit betting pressured its profitin that country.

The deal represents an enterprise value of A$300 million,the company said.

The Australian business, which operates licensed betting,over the telephone, internet and mobile phone platforms, hasabout 284,000 customers. It made up 7 percent of William Hill'stotal revenue and nearly 6 percent of adjusted operating profitin 2017.

The company said in January it was reviewing options for theAustralia business after the unit's profits came under pressurefollowing a ban on credit betting and the likely introduction ofa point of consumption tax in some states. the retreat from Australia could raise furtherquestions about the future of William Hill, which has missed outon a round of consolidation in its home British market.

The company said in November it was in "very preliminarydiscussions" with CrownBet, which is partly owned by Canada'sStars Group Inc TSGI.TO , about a possible combination with itsAustralian business.

Proceeds from the sale will be partly used to pay down debt,William Hill said. ($1 = 1.2880 Australian dollars)

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