Ladbrokes Regulatory News (LAD)

Termination of discussions with Sportingbet PLC

In response to press speculation, Ladbrokes announced on 23 June 2011 that it was in highly preliminary discussions with Sportingbet PLC ("Sportingbet") regarding a possible offer for Sportingbet.  Ladbrokes today announces that these discussions have been mutually terminated.

CEO Richard Glynn commented,

"In August of last year we laid out a very clear organic strategy and investment programme for the reinvigoration of Ladbrokes.  We were also clear on the intention to explore opportunities which enabled us to accelerate our progress that enhanced shareholder value and without exposure to non mitigatable regulatory liability.

"The potential benefits and risks associated with a combination with Sportingbet were clear to us from the outset and have been well covered by the market. Having completed our analysis we have been unable to agree a structure which delivers increased shareholder value within an acceptable regulatory environment. We have therefore agreed to end our discussions.

 
"Throughout this process we have remained fully focused on the execution of our organic strategy and continue to make good progress in its implementation, which remains on track. We are confident this plan will deliver significant value to our shareholders and we will continue to take a disciplined approach over potential opportunities to accelerate it."

Enquiries                            

Richard Glynn                                     Ian Bull Chief Finance Officer

Chief Executive Officer                      

Matt Sharff                                           Ciaran O'Brien

Head of Investor Relations                  Corporate & Government Affairs Director                             

Tel: +44 (0) 208 515 5730                  Tel: +44 (0) 7976 180 173