Betting group Evoke's shares have rocketed in early morning trading, following reports that Bally's Intralot is eyeing a £243m takeover of the company. Shares soared 16.2 per cent to 46.4 pence per share, with shares up 24.2 per cent since January.
The move comes as the UK's online gambling industry faces a tax hike. In a statement, Evoke has branded the Budget raid on gambling firms 'misguided', suggesting that the tax hike will harm the sector's competitiveness.
According to the Financial Times, Bally's Intralot has begun making formal approaches to Evoke's management. The company's shares have reacted positively to the news, with investors hoping that the takeover will provide a much-needed boost to the company's fortunes.
The UK's online gambling industry is a significant contributor to the country's economy, with revenue of £14.2bn in 2022. However, the sector has faced increasing scrutiny in recent years, with concerns over problem gambling and tax avoidance.
The news is likely to have significant implications for UK savers, mortgage holders, and investors. With the UK's economic outlook uncertain, the potential takeover of Evoke could provide a much-needed boost to investor confidence.
The Bank of England has been keeping a close eye on the UK's financial markets, with interest rates remaining at 5.25% since March. While the central bank has not commented on the takeover, the move is likely to be closely watched by policymakers.