NEW BID FOR CONTROL OF GALA CORAL GROUP
25 December 2009
An unexpected initiative from across the
Atlantic spices up the market
The battle for control of the UK online and land
gambling group Gala Coral took an unexpected twist this
week when the US-based private equity firm Apollo made
its unexpected move, offering GBP 250 million to secure
50 percent of the gambling company's shares.
Gala
Coral is at the centre of several attempts by British
private equity companies and lenders to gain control and
enable the company to clear some of its GBP 2.6 billion
debt burden
Gala operates a significant online
bingo and casino business along with land gambling
interests of some 2 000 betting shops, 148 bingo clubs
and 227 casinos.
Apollo is not inexperienced in
matters gambling, holding a substantial shareholding in
one of the world's major gambling enterprises, Harrah’s
Entertainment in the United States.
According to
a Times Online analysis of the Apollo offer, the
American company proposes to pay GBP 250 million to the
company’s senior lenders. Junior lenders would be given
the remaining 50 percent of the equity. However, Apollo
would have majority voting rights, in effect handing it
control. The scheme is unlikely to be well received by
existing shareholders, who would receive nothing.
Gala’s main lenders are due to deliver their verdict
before Christmas on which restructuring proposal they
prefer, after which it is likely that the deal will be
finalised by the northern hemisphere spring.
Online Casino News Courtesy of
Infopowa
More news here.
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