U.K. betting-shop chain sold for $1.3 billion

Monday, Aug. 5, 2002 | 10:49 a.m.

LONDON -- Charterhouse Development Capital agreed to buy Coral Eurobet Ltd., the third-largest U.K. betting-shop chain, from Morgan Grenfell Private Equity for 860 million pounds ($1.3 billion), Coral said last week.

Coral Chief Executive Officer Bob Scott will step down after completion of the transaction and be succeeded by managing director Vaughn Ashdown, Coral said.

Morgan Grenfell Private Equity, the venture-capital division of Deutsche Bank AG, bought Coral in 1999 from Ladbroke Group Plc for 390 million pounds. Coral, which had been planning an initial public offering as early as February 2000, decided against a share sale earlier this year and hired Lehman Brothers to seek a buyer.

"This deal provides an ideal platform from which we can exploit the anticipated growth in betting and gaming both in the U.K. and internationally," Ashdown said in the statement.

In May, Coral reported a 90 percent gain in earnings before interest, tax, depreciation and amortization for the 28 weeks ended April 14.

Betting companies are benefiting from the easing of U.K. gambling rules. Bookmakers may now open on Sundays and evenings and have slot machines in their shops.