SBC News Voice of the Sports Betting Industry
Carl Leaver CEO of Gala Coral Group has dismissed claims that the creation of Ladbrokes-Coral will only favour Coral stakeholders.
Having announced Gala Coral’s year to date performance which saw the operator record EBITDA earnings of £205 million, Leaver dismissed the recent criticisms of Ladbrokes investor Dermot Desmond.
The Irish investment magnet had made scathing criticisms regarding Ladbrokes governance woeful performance and its decision to merge with Coral. Desmond a 2.8% stakeholder in Ladbrokes further claimed that the merger would solely benefit Coral’s private equity debt holders.
Updating the market with regards to the merger, Leaver stated “I think these results will help to reaffirm that this is a great deal for Ladbrokes shareholders”.
Leaver further dismissed Desmond’s claims that the new merged enterprise would be engulfed by its debt burden of 3X EBITDA earnings.
Leaver who will take the leadership reigns as CEO of Ladbrokes-Coral, acknowledged the concerns regarding corporate debt, but countered Desmond claims stating that the new enterprise would create “very strong cashflows” which would reduce its debt burden quickly.
At lasts weeks Ladbrokes ‘extraordinary meeting’ a reported 96% of shareholders approved the merger having heard Desmond’s arguments against its progression.
