23rd Jun 2015 05:14
LONDON (Alliance News) - Responding to recent press speculation, bookmaker Ladbrokes PLC on Tuesday confirmed that it is in discussions with the board of Gala Coral Group Ltd regarding a possible merger of Ladbrokes and Coral Retail, Eurobet Retail and Gala Coral's Online businesses, to create an enlarged business which would be listed on the official list of the UK Listing Authority and traded on the main market of the London Stock Exchange.
"Shareholders are advised that there can be no certainty that the discussions between Ladbrokes and Gala Coral will lead to any agreement concerning the possible merger or as to the timing or terms of any such agreement and there can be no assurance that, even if reached, any such agreement would be completed," Ladbrokes said.
Ladbrokes also noted that, in the event that such a transaction proceeds, it may undertake a non pre-emptive equity placing to strengthen the balance sheet of the Combined Entity.
In light of this development, the Business Review presentation scheduled for 30 June may be re-scheduled depending on how discussions progress.
Jim Mullen, the chief executive of Ladbrokes, said: "A merger with Gala Coral could create a combined business with significant scale and has the potential to generate substantial cost synergies, creating value for both companies' shareholders. The Board has not yet concluded whether a transaction is strategically attractive and can be delivered to shareholders on appropriate terms."
Copyright RTT News/dpa-AFX
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