British bookmaker Betfred has finalised a £195 million refinancing package which will enable the firm to buy almost 400 high-street betting shops from Ladbrokes and Gala Coral.
Insider Media reported that the senior debt package has been provided by Barclays, Llords Bank, RBs and Yorkshire Bank. KPMG Debt Advisory is involved in an advisory capacity.
Competition and Markets Authority ordered shops sale
Ladbrokes and Coral announced that it would be selling365 licensed betting offices to Betfred and rival bookmaker Stan James to satisfy the demands of the UK Competition and Markets Authority ahead of the companies’ merger.
In selling off the properties, the CMA said that Ladbrokes and Gala Coral would be easing concerns on the competition front.
Betfred’s refinancing package will assist in the purchase of 322 properties for a cash considering of £55 million. Stan James, on the other hand, will be taking on 37 shops for £500,000.
KPMG sees purchase in positive light
Asked to comment upon Betfred’s purchase, the head of debt advisory at KPMG Nick Dodd explained that, “Investment to develop a multi-channel offering and the in-shop experience for customers, particularly through the digitisation of outlets, is a real focus for established bookmakers as they respond to the challenge presented by online competitors.
“We at KPMG expect to see more firms seek external funding to fuel their expansion and build on strong growth in the industry,” Dodd added