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Ladbrokes and Coral announce planned sale of 359 shops

Mon, 17th Oct 2016 07:13

(ShareCast News) - Bookmaker Ladbrokes announced on Monday that subsidiaries of both itself and merger partner Gala Coral Group have agreed to sell a total of 359 licensed betting offices to Done Brothers Cash Betting - trading as Betfred - and StanJames Abingdon - trading as Stan James.The FTSE 250 firm said Betfred will purchase 322 shops for a cash consideration of £55m, and Stan James will purchase 37 shops for a cash consideration of £0.5m.It said the exchange of contracts remained conditional upon the approval of the Competition and Markets Authority, and the completion of the merger of Ladbrokes and the Coral Group.The combined consideration of £55.5m for the sale of the 359 shops would be payable to each of the vendors in proportion to the profitability of the shops, with Ladbrokes giving its intention to use the consideration it receives to repay debt.In total, 185 shops will be sold from the Ladbrokes chain for an expected consideration of £29m, and 174 shops will go from the Coral chain for around £26.5m."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," said Ladbrokes chief executive Jim Mullen.The shops generated fully costed EBITDA - including an estimated allocation of retail back office costs - of £16.8m in the year to 31 December 2015, resulting in an EBITDA consideration multiple of 3.3x.Ladbrokes said the disposal will be slightly dilutive to both its and the enlarged group's earnings.On 26 July, the CMA published its final conclusions into the merger in which it stated that it could proceed subject to the divestment of 350 to 400 shops, and that completion of the merger could occur when the shop divestment process was substantially complete.The CMA will now decide if it will approve the merger upon the exchange of contracts for the sale of the shops to Betfred and Stan James.Once approval has been received, Ladbrokes and the Coral Group will seek the CMA's consent to complete the merger, "subject to the divestiture of one remaining shop", Ladbrokes' board said.
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13 Oct 2015 16:41

Broker tips: Jupiter Fund Management, Ladbrokes, GSK

(ShareCast News) - RBC Capital Markets has upgraded Jupiter Fund Management as it believes current forecasts underestimate the group's inflows and capital returns. After Monday's trading update, RBC's new 'outperform' rating, up from the previous 'sector perform', is accompanied by a 3% increase in

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13 Oct 2015 14:01

Citigroup upgrades Ladbrokes, says shares have fallen far enough

(ShareCast News) - Citigroup upgraded Ladbrokes to 'neutral' from 'sell' and raised its price target to 110p from 100p, saying the shares have now fallen far enough. It said the new target price represents the mid-point between the upside potential it sees under a deal scenario and the downside risk

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13 Oct 2015 09:49

Tuesday broker round-up

(ShareCast News) - Ladbrokes: Citigroup upgrades to neutral, raises target price to 110.00p. Jupiter Fund Management: RBC Capital Markets upgrades to outperform, bumps up target price to 475.00p. Jefferies reiterates to buy, lifts target price to 493.00p. Glaxosmithkline: JP Morgan Cazenove upgrade

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13 Oct 2015 08:43

BROKER RATINGS SUMMARY: Citi Cuts AB Foods As UBS Raises Smiths Group

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13 Oct 2015 07:17

LONDON BRIEFING: SABMiller Succumbs To AB InBev To Create Beer Giant

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9 Oct 2015 07:21

Ladbrokes completes Coral merger financing

(ShareCast News) - Ladbrokes has signed a £1.35bn facility to provide financing for its proposed merger with Coral. The new facility for the FTSE 250 company is with a syndicate of relationship banks and has three tranches available for drawing once the merger is completed. The three tranches inclu

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9 Oct 2015 06:36

Ladbrokes Signs GBP1.35 Billion Facility To Finance Gala Coral Merger

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8 Oct 2015 16:22

London close: Stocks rise after BoE and ECB meeting minutes

(ShareCast News) - UK stocks gained after the Bank of England decided to keep interest rates unchanged and the European Central Bank suggested it might consider further stimulus. The BoE's Monetary Policy Committee voted 8-1 to maintain rates at 0.50% and its asset purchase programme at £375bn, as e

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8 Oct 2015 11:07

London midday: Stocks rise as BoE votes to keep interest rates unchanged

(ShareCast News) - London stocks recovered slightly from losses earlier on Thursday as the Bank of England decided to keep interest rates unchanged. The BoE's Monetary Policy Committee voted 8-1 to maintain rates at 0.50% and its asset purchase programme at £375bn, as expected by analysts. Ian McCaf

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8 Oct 2015 08:31

London open: Stocks fall ahead of BoE, ECB and Federal Reserve meeting minutes

(ShareCast News) - The FTSE fell on Thursday morning on uncertainty ahead of policy details from the central banks of the UK, US and Europe. The Bank of England will at 1200 BST release its latest policy decision with analysts expecting no change to interest rates or the asset purchase programme. An

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8 Oct 2015 07:59

Ladbrokes names Kristof Fahy new chief marketing officer

(ShareCast News) - Ladbrokes has appointed Kristof Fahy as chief marketing officer to lead all brand and marketing activity across digital and retail. Fahy will join the company from Telegraph Media, where he is chief marketing officer responsible for marketing and digital acquisition. Prior to that

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8 Oct 2015 06:36

Ladbrokes Appoints Former William Hill Marketing Chief To Same Role

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17 Sep 2015 15:09

Dividends Calendar - Week Ahead

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16 Sep 2015 07:36

Ladbrokes CFO Ian Bull to step down in February 2016

(ShareCast News) - Ladbrokes' chief financial officer, Ian Bull, is leaving the company ahead of its merger with Gala Coral. Ladbrokes said Bull, who joined the business as CFO in July 2011, has agreed to stay on until the announcement of the 2015 full-year results scheduled for the end of February.

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16 Sep 2015 06:27

Ladbrokes CFO Ian Bull To Step Down Following Merger With Gala Coral

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