Evoke has announced that it is currently engaged in discussions with Bally’s Intralot regarding an all-share combination valued at £0.50 ($0.67) per Evoke share. The proposed deal could also include a partial cash alternative and must be finalized by May 18, which is 28 days from today’s announcement. Evoke is reviewing the offer with the assistance of its financial advisers, Morgan Stanley and Rothschild & Co.
This development comes after a period of speculation following Evoke's strategic review, initiated in December, aimed at exploring both partial and full sale opportunities. Bally’s Intralot has indicated that any formal offer would depend on standard conditions and approvals and that it may change the offer's terms, including its price and structure.
In November, reports surfaced suggesting that Evoke was considering the sale of its Italian division to mitigate the impact of an upcoming increase in gambling taxes announced in the UK government’s autumn budget. Remote Gaming Duty is set to rise from 21% to 40%, and Remote Betting Duty will also see an increase starting in April.
As part of the adjustments in response to the new tax regime, Evoke plans to close 200 William Hill betting shops across the UK, with closures commencing in May. This move mirrors decisions made by other companies in the sector, including Entain and Flutter.
In January, Deutsche Bank downgraded Evoke’s shares to a “hold” status, with analyst Richard Huber remarking that the UK budget’s changes were particularly damaging to Evoke due to its exposure to the online market. Consequently, Deutsche Bank revised its FY26 and FY27 EBITDA forecasts downward by 12% and 18%, respectively.
Industry analysts are assessing which segments might be sold as part of Evoke’s broader strategic review, with some suggesting that a private equity acquisition could alleviate the company’s debt levels. In February, Ben Robinson from Corfai remarked that beyond retail divestitures, significant opportunities for sustainable savings could arise from operational consolidation, automation, and AI-driven efficiencies without hindering growth.
Following these developments, Evoke’s share price opened at £0.43 this morning, an increase from Friday’s closing price of £0.38.
