Takeover offer presented to Gala Bingo
22nd December, 2009
American private equity firm, Apollo, is apparently making a last effort in order to take over Gala Coral which is the umbrella company that owns Gala Bingo.
Apollo has submitted a proposal to the Gala board suggesting a £250 million sum in exchange for 50% of the company. Gala Coral are said to be in debt to the figure of £2.6 billion and have already been in talks with another party called Blackstone who are also keen on acquiring a controlling stake in the company.
Word from insiders suggests that a group of Gala Corals junior lenders have also been working on a proposal and are currently the favourite to bag the controlling share. The Apollo Equity firm have dealt with the world of online gambling before having large shares in Harrah’s which is the Las Vegas operator behind such locations as Caesars Palace.
If Gala Coral are to accept the offer of £250 million, this sum would go to repaying senior lenders with junior lenders acquiring the remaining 50%. Apollo would retain the majority voting rights.
The lenders are due to announce a decision over the next few days with the hopes that a deal will be processed within the next few months.
By Paul
