Coral reported to be gearing up for flotation
Bookmaker Coral Eurobet was today said to be gearing up for an £800m (€1.2bn) 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% of the business, which would be worth around £128m (€185.6m) 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 the Sunday Times, 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 (€1.7bn) debt means any prospective buyer would have to find £2bn (€2.9bn) to fund the deal.
Coral was founded in 1926. As well as its retail outlets, it has a telephone betting operation, an online betting arm and greyhound racing tracks.
The group has bought a number of smaller chains in recent years and a flotation is expected to help fund further acquisitions.
Coral has changed hands a number of times in recent years with other wners including rival Ladbrokes and Morgan Grenfall Private Equity.
Profits have more than doubled since the Charterhouse buyout. Coral makes annual operating profits of around £145m (€210m) on sales of £5.4bn (€7.8bn).
Charterhouse has already more than recovered its original £278m (€403m) outlay, having taken a total of £560m (€812m) out of the business.
A spokesman for Coral said the company would not comment on market speculation.
