Gala Bingo division offloaded

Gala Bingo division offloaded

Monday, October 26, 2015
Deal separate from proposed Ladbrokes merger

Gala Coral chief executive Carl Leaver has hailed a deal to offload the Gala Bingo retail division to Caledonia Investments as the next step in the transformation of the UK company.

Under the deal worth £241m (€334m/$370m), Caledonia will take control of all 130 Gala Bingo outlets in the UK, pending approval from the UK Gambling Commission.

The names of the outlets will remain unchanged due to a licence agreement between the two parties, with the Galabingo.com and Galacasino.com websites staying under the control of Gala Coral.

Earlier this month, UK bookmaker Ladbrokes said that it had agreed a £1.35bn facility with banks to fund its proposed merger with Gala Coral. The Caledonia deal is unrelated to the proposed Ladbrokes merger, which is expected to be completed by the end of this year.

“The sale is another transformative step for Gala Coral Group, following the turnaround of the business over the past few years,” Leaver said.

“Gala Coral Group remains focused on growing and developing our retail bookmaking and online businesses, and concluding the proposed merger with Ladbrokes.”

Duncan Johnson, head of unquoted investments and Caledonia, praised Gala Bingo’s “defensive, enduring business model, which delivers strong cash generation and dividend yield”.

The merger between Ladbrokes and Gala Coral was announced in July, with the combined company set to be worth £2.3bn.

Latest

Patagonia expands in LatAm through AGS partnership

Patagonia expands in LatAm through AGS partnership

Cirsa sees further improvement in bingo revenues

Three initiatives that have transformed JackpotJoy

‘Bargain basement’ JackpotJoy gets analyst boost

Latest poll

Is the current bonus structure to blame for the gambling industry losing trust?

A recent Gambling Commission survey has noted a plummet in consumer confidence in the gambling industry. What do you think is the biggest cause behind this?

Confusing sign-up bonus conditions
49% (55 votes)
Over saturation of gambling advertising on TV
19% (21 votes)
FOBTs and the campaign against them
16% (18 votes)
Perceived association with crime
10% (11 votes)
The incidence of problem gambling
5% (6 votes)
Clustering of gambling establishments
2% (2 votes)
Total votes: 113

Gaming Products & Services Directory

The essential directory for the gaming industry