Online Casino Transfer: News - Gala Switches Up Ownership

07/16/2010		Online Casino Style: News Gala Switches Up Ownership
Home History Games News Dictionary		Though the summer is typically a slow time in terms of major moves and acquisitions, one very popular online gambling firm has broken the mold this week by coming to a final agreement on its sale to new owners. The powerhouse Gala Coral, known as a formidable competitor in both the internet casino and land-based gambling world, has come under new ownership this week with the mezzanine debt holders assigned to the group stepping up to the plate. Private equity houses Apollo, Cerberus, Park Square and York Capital Management have come to a new ownership agreement with the existing owners that help to ease some of the internet gambling company’s burden of debt. It’s a welcome respite as the firm has managed to accrue some £2.6 billion in owed funds, much of which will be erased with the new deal. According to the contract, £558 million of their existing shares will be converted into equity, in addition to the injection of another £200 million cash to help ease the burden felt by a significant amount, totaling £700 million. There’s plenty of upside to the new ownership agreement, though the primary owners Candover, Cinven, and Permira will be getting the short end of the stick as they will now be leaving the management of Gala Coral. According to a statement by the group, the addition of the cash money will be a helpful element in future plans for the group, as they said the bulk of the funds will be used to grow their businesses, including in the online gambling sector. “I am delighted that, after nearly 12 months, we have successfully concluded one of the largest and most complex restructurings in UK corporate history,” said the executive chairman, Neil Goulden.

07/16/2010

Online Casino Style: News
Gala Switches Up Ownership

Though the summer is typically a slow time in terms of major moves and acquisitions, one very popular online gambling firm has broken the mold this week by coming to a final agreement on its sale to new owners. The powerhouse Gala Coral, known as a formidable competitor in both the internet casino and land-based gambling world, has come under new ownership this week with the mezzanine debt holders assigned to the group stepping up to the plate.

Private equity houses Apollo, Cerberus, Park Square and York Capital Management have come to a new ownership agreement with the existing owners that help to ease some of the internet gambling company’s burden of debt. It’s a welcome respite as the firm has managed to accrue some £2.6 billion in owed funds, much of which will be erased with the new deal. According to the contract, £558 million of their existing shares will be converted into equity, in addition to the injection of another £200 million cash to help ease the burden felt by a significant amount, totaling £700 million.

There’s plenty of upside to the new ownership agreement, though the primary owners Candover, Cinven, and Permira will be getting the short end of the stick as they will now be leaving the management of Gala Coral. According to a statement by the group, the addition of the cash money will be a helpful element in future plans for the group, as they said the bulk of the funds will be used to grow their businesses, including in the online gambling sector.

“I am delighted that, after nearly 12 months, we have successfully concluded one of the largest and most complex restructurings in UK corporate history,” said the executive chairman, Neil Goulden.