Mon, 21 Feb 2011 | BUSINESS NEWS
The biggest gaming company in Europe, Gala Coral, is exploring breaking up and selling off its operations in a bid to generate quick returns on its owners' investments.
The potential break up - which could happen within months - follows the complex refinancing it underwent last year. The process saw its private equity backers lose control of it, while 25 holders of the company's debt adopted the equity at the same time as writing off £700 million of its debt.
Gala has so far not commented on the news, but it is understood that battles have been taken place at board-level over how its shareholders can benefit.
One source close to the company said any sale would be comprehensive. "The jewel in the crown is the Coral bookmaking chain and the word is that everything else, including the casinos and the bingo division, is up for sale," the source said.
Insiders have said that chief executive, Carl Leaver - who took on the position three months ago - is keen to make his mark on the company, but that "shareholders change their mind on a daily basis and don't agree with each other most of the time".
The sales of the 26-branch casino division and the 144-branch bingo division are thought to be simple as each division operates autonomously. An analyst said the company has never been able to make "great synergies" between its divisions, so "it's very possible that they could realise more value by splitting up the company."
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