Coral Merger Approved by Ladbrokes Shareholders

Over 90% of Ladbrokers shareholders have voted in favour of a company merger with fellow UK-based bookmaker Gala Coral.

In big UK gambling news, a merger between popular British bookmakers Ladbrokes and Gala Coral has received the approval of the vast majority of Ladbrokes shareholders. The companies had first announced their proposed merger last July. As a combined entity, the companies will be worth approximately £2.3 billion.

The new business venture, which has been dubbed ‘Ladbrokes Coral,’ is expected to generate £2.1 billion in revenue, as well as earnings of around £392 million before interest, depreciation, tax, and amortization. It will have to receive regulatory approval from the Competition & Markets Authority (CMA) prior to going through.

Not all Ladbrokes shareholders approve of the merger

While the bulk of shareholders approve of the online sportsbooks in UK business merger, ‘Ladbrokes Coral’ has yet to receive widespread approval from everyone involved. Irish billionaire and Ladbrokes shareholder Dermot Desmond had publicly denounced the deal as a “bad deal” in the past, and continued his criticism in a speech at the general meeting.

“In these discussions it has become clear that while most have placed their proxy in favour of the resolutions, they have huge sympathy with the points we raised and are voting for the Coral transaction out of a sense of frustration and resignation with the current board and management. I share their frustration, but not their resignation,” said Desmond.