Coral plans £800m float amid fears of gambling stocks glut
As reported by - The Times:
The owners of Coral Eurobet, Britain’s third-biggest bookmaker, are preparing to cash out at the top of the gaming market with plans for an £800 million flotation, which could be launched later this year.
The stock market launch is being planned as concern mounts in the betting community of an oversupply of gambling stocks at a time when the gaming industry is anticipating a threat from Olympics-related lottery games.
Coral Eurobet, which has 1,260 betting shops across the UK, appointed Lehman Brothers, the investment bank, at the end of last week to advise on a potential float that would value the business at £2 billion, including its £1.2 billion of debt.
Vaughn Ashdown, the chief executive, is believed to have made more than £50 million from his stake in the business and previous refinancings. Together the management team owns 16 per cent of Coral Eurobet, worth an estimated £128 million.
The timing of the offer has not been decided and will depend on market conditions, but sources suggest a launch later this year. A straight sale of the business remains a possibility, but a float is the preferred option.
