A total of 359 shops belonging to Ladbrokes and Gala Coral are set to be sold to Betfred and Stan James in order to complete the merger between the two betting companies.
The final steps of the £2.7billion merger between Ladbrokes and Gala Coral have been cleared, with the pair having agreed to sell an amount of their shops to Betfred and Stan James.
The pair will be selling 359 shops to comply with the ruling of the Competition and Markets Authority (CMA), of which 322 will be purchased by Betfred for £55million, and 37 to go to Stan James for a cash consideration of £500,000, with the intention being that the £55.5million received will be used to repay debt.
Ladbrokes has confirmed that the 359 shops being sold generated fully costed EBITDA of £16.8 million in the year to 31st December 2015. The betting company is going to be selling a total of 185 shops, while Gala Coral is going to be letting go of 174 locations.
The CMA will be assessing the shop sales, with the merger to be completed upon its approval and the sale of one further shop.
Chief Executive of Ladbrokes, Jim Mullen, said of the matter: “The sale of these shops will clear the last significant hurdle to delivering on the merger with Coral and paves the way for our focus on completion and quickly delivering on the opportunities the merger offers.”
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