British
Bookmaker set for stock market flotation
British Bookmaker set
for stock market flotation By staffBookmaker
Coral Eurobet was today said to be gearing up
for an ?800m stock market flotation.
The group, which operates some 1,260 betting
shops in the UK, has reportedly appointed bankers
to look at its options.
A listing would make it the latest in a number
of firms to cash in on the stock market's appetite
for gambling stocks, following the recent flotations
of internet poker groups Party Gaming and Empire
Online.
It would mark a major windfall for the company's
management team, led by chief executive Vaughn
Ashdown. Coral's management owns 16 per cent
of the business, which would be worth around
?128m at the value being discussed.
The remainder of the group is owned by private
equity firm Charterhouse, which backed a management
buyout in 2002.
According to a report, Coral has hired investment
bank Lehman Brothers as its adviser.
A flotation is said to be its preferred option,
although a trade sale has not been ruled out.
However, the company's ?1.2bn debt means any
prospective buyer would have to find ?2bn to
fund the deal.
Coral was founded in 1926.
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