Almost a year after the successful listing of UK bookmaker William Hill last summer, CVC Capital Partners and Cinven have decided to cash in a further tranche of their remaining interest in the company listed on the London Stock Exchange.
Cinven and CVC netted a total of £400m from the flotation last year, which was in excess of ten times oversubscribed. The flotation price of 225 pence was at the top end of the 190 pence to 240 pence price range. The company is currently trading at 268 pence.
The IPO was one of last year’s most successful initial public offerings in a quiet year for new issues. CVC and Cinven retained an 18 per cent stake in the business, which they were required to hold until at least March of this year. In April, Jagnish Chotai and Donald Mackenzie, Cinven and CVC’s representatives on the William Hill board, resigned their positions.
55m William Hill shares, about 13 per cent, were placed with institutional investors by Deutsche Bank and Smith Barney over the last week. The shares were placed at 265 pence, 15 per cent above the initial launch price and only one per cent below the current price. CVC disposed of approximately 25 million shares, with Cinven selling the remainder.