A New Giant In UK Gambling?
Published: Friday, October 07, 2005 Online-Casinos.com
A NEW GIANT ON THE BLOCK?
Speculation that Coral Eurobet the target for Gala
The intense interest in online casino gambling mergers and acquisitions continued
this week in the British business press with reports that the major land casino
and bingo group Gala may have its corporate eye on bookie group Coral Eurobet.
Some reports linked Gala with private equity group CVC Capital in speculation
as to likely suitors for Coral, which is valued at some GBP 2 billion but is
encumbered with GBP 1.2 billion of debt. The group has betting shops in the
UK and a strong online brand in Eurobet.
Coral has been exciting interest since its owners appointed Lehman Brothers
to prepare the firm for a flotation on the London Stock Exchange (see earlier
Online-Casinos.com and InfoPowa reports). There has been persistent talk of
an IPO in London before the end of this year, but equally strong rumours that
an outright sale might be in prospect.
Talks between Gala’s three private equity backers, Permira, Candover and
Cinven and the private equity group that owns Coral, are reported to be at an
advanced stage.
A successful Gala takeover would make the Gala-Coral group the UK’s biggest
betting and gaming group - a powerful new presence in the industry.
