Ladbrokes restates case for Coral merger after Desmond criticisms

ladbrokesLadbrokes has moved to counter the call by Dermot Desmond for shareholders to reject its proposed merger with Coral by reiterating the rationale behind the deal.

In a message to the stock market, Ladbrokes’ board said that it ‘noted’ Desmond’s letter and acknowledged that it had had ‘significant dealings’ with him as both a shareholder and a commercial partner over recent times, including the Ladbrokes acquisition of Betdaq and Chronicle Bookmakers.

However it said that the merger with Coral has ‘compelling strategic rationale and benefits’ adding: “The Board remains confident that shareholders will see the attraction of the proposed merger and continues to work towards a successful conclusion to the proposed transaction.”

Ladbrokes said that the partnership would see:

  • The potential to deliver faster online growth
  • The creation of the UK’s largest LBO estate
  • The creation of an extensive international portfolio of regulated businesses
  • The delivery of significant cost synergies underpinning shareholder returns
  • The ability to operate across an enhanced and integrated technology platform

The Directors reiterate their recommendation to shareholders to vote in favour of the Resolutions to be proposed at the General Meeting to be held on 24 November 2015.

Check Also

Entain sells Betdaq back to Dermot Desmond

Entain Plc has confirmed the sale of the online betting exchange Betdaq to former owner …

Rank to collect +£80m HMRC VAT settlement

Rank Group Plc has reached an agreement with HMRC in relation to its outstanding VAT …


Jeff Cleminson leaves SG Digital to join Optimove

Jeff Cleminson, a long-term senior director at SG Digital, has been confirmed as the new …