The merger of Ladbrokes Plc and Gala Coral is almost good to go after the bookmakers revealed that 359 betting shops of its combined retail portfolio will be sold to Betfred (322 shops) and Stan James (37 ).
The sale of the betting shops is conditional upon the approval of the UK Competition and Markets Authority (UK CMA) and will be transacted once the merger of Ladbrokes and Coral is complete.
Independent bookmaker Betfred will purchase 322 LBOs for a ‘cash consideration’ of £55 million. Gibraltar-based Stan James plans to acquire the remaining 37 shops for a cash sum of £500,000.
Updating investors, Ladbrokes governance disclosed that the combined retail inventory sold to Betfred and Stan James had generated a ‘fully costed EBITDA of £16.8 million’ for full-year 2015.
The £55.5 million cash value generated from the sale of the retail inventory will be used to repay combined corporate debt.
Commenting on the sale Jim Mullen, Chief Executive of Ladbrokes said: “The sale of these shops will clear the last significant hurdle to deliver on the merger with Coral and paves the way for our focus on completion and quickly delivering on the opportunities the merger offers.”
The planned sale of the combined inventory sees Ladbrokes and Coral clear a major hurdle in its ongoing merger process which enters its 15th month since its announcement in July 2015.
Heading towards final UK CMA merger clearance, Ladbrokes and Coral governances’ will publish a prospectus for the merged enterprise seeking to FCA approval to list on the London Stock Exchange.