What's Next - An IPO For Coral Eurobet?
Published: Friday, August 05, 2005 Online-Casinos.com
WHAT'S NEXT - AN IPO FOR CORAL EUROBET?
British bookie the latest centre of speculation
Internet gambling people in the know and investment gurus alike were talking
about the latest listing speculation this week - that Coral Eurobet is setting
itself up for a GBP 800 million stock market flotation.
According to the Sunday Times, the British gambling group operates 1260 betting
shops in the UK, and has reportedly appointed London investment bankers Lehman
Brothers to advise it on a public listing.
The newspaper speculates that the Coral Eurobet executive team, which owns 16
percent of the stock could reap a golden harvest from such a listing if it is
as successful as the recent Empire Online and Party Gaming initiatives.
The majority stock holder is private equity house Charterhouse.
A flotation is said to be its preferred option, although a trade sale has not
been ruled out. However, the company’s GBP 1.2 billion debt means any prospective
buyer would have to find GBP 2 billion to fund the deal.
Coral was founded in 1926. As well as its retail outlets, it has a telephone
betting operation, an Internet betting arm and greyhound racing tracks. The
company makes annual operating profits of around GBP 145 million on sales of
GBP 5.4 billion.
