As part of their previously announced planned merger, British sportsbetting operators Ladbrokes and Gala Coral Group Limited have revealed that they will be offloading 359 licensed betting shops to rivals Betfred and Stan James.
Via a joint statement released on Sunday, the sportsbetting pair declared that Betfred parent Done Brothers (Cash Betting) Limited will purchase 322 of the shops for approximately $66.92 million in cash while Stan James (Abingdon) Limited is to pay around $608,223 for the remaining 37 premises.
“I am delighted that we have reached agreement with Betfred and Stan James to transfer our shops into their ownership,” said Carl Leaver, Chief Executive Officer for Nottingham-based Gala Coral Group Limited. “While other potential purchasers were prepared to pay a significantly higher price, Betfred and Stan James delivered greater certainty which was critical to paving the way for the completion of our merger with Ladbrokes. Subject to [Competition And Markets Authority] approval, we now hope to complete the merger before the end of October so that we can begin to realize the significant value available to both company’s shareholders.”
The offloading of 350 to 400 shops was a requirement laid out by the Competition And Markets Authority while Ladbrokes and Gala Coral Group Limited stated that the premises being sold generated earnings of about $20.44 million in 2015 with their final sale price representing a multiple of 3.3. The pair explained that the sales are conditional upon the concluding of the proposed merger with the shops set to be subsequently transferred to their new owners on a phased basis.
“The sale of these shops will clear the last significant hurdle to delivering on the merger with [Gala Coral Group Limited] and paves the way for our focus on completion and quickly delivering on the opportunities the merger offers,” said Jim Mullen, Chief Executive Officer for Harrow-based Ladbrokes.