According to a UK report in the Times, the announced potential merger between Ladbrokes Coral and GVC Holdings could leave three corporate turnaround specialists that are being credited with reviving the fortunes of Gala Coral holding shares worth more than £40m.
Gala Coral’s former head, Carl Leaver, former chairman, Rob Templeman, and Paul Bowtell, the finance chief of Ladbrokes Coral, own shares that could be worth as much as £43.4m according to the report. Ladbrokes and Gala Coral merged last year in a £2.3 billion deal.
The final cost of the GVC takeover will depend on the UK government’s review of fixed-odds betting terminals. The government will set a new maximum bet on the terminals and GVC has priced its offer according to that assessment. The lower the maximum stake, the lower the price GVC will have to pay for Ladbrokes Coral.
If the government sets the bet £50—which is what UK bookmakers are seeking—Ladbrokes Ladbrokes Coral’s shareholders could receive as much as 207.2p a share.
At that level, Leaver would hold a share pot worth up to £24.2 million, the report said. Jim Mullen, the chief executive of Ladbrokes Coral, is expected to leave after the merger with shares and options worth up to £4 million, the report said.
