Ladbrokes and Gala Coral Group have agreed to sell a total of 359 licensed betting offices to Done Brothers (Cash Betting) Limited (trading as Betfred) and StanJames (Abingdon) Limited (trading as Stan James).
Betfred will purchase 322 shops for a cash consideration of £55.0m and Stan James will purchase 37 shops for a cash consideration of £0.5m. The exchange of contracts is conditional upon: - The approval of the Competition and Markets Authority
- The completion of the merger of Ladbrokes and the Coral Group
The combined consideration of £55.5m for the sale of the 359 shops is payable to each of the Vendors in proportion to the profitability of the shops(1). It is intended that the consideration received will be used to repay debt.
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. The disposal will be slightly dilutive to both Ladbrokes and the enlarged group's earnings.
At 8:30am: (LON:LAD) Ladbrokes PLC share price was -2.15p at 136.95p