Apollo plans last minute Gala Coral takeover

According to the report, Apollo is proposing to pay £250m (€281.6m) in exchange for 50 per cent of the company’s shares.

This is the latest in the fight for control of Gala, which is owned by private equity firms Candover, Cinven and Permira.

Last month, reports surfaced indicating Blackstone as an interested party. A group of the gaming company’s junior lenders are also reportedly looking to take control in a separate bid.

Apollo proposes paying £250m to Gala’s senior lenders. Junior lenders would be given the remaining 50 per cent of the equity. However, Apollo would have majority voting rights, in effect handing it control, the report said.

Gala, which is carrying a £2.6bn (€2.9bn) pile of debt, is facing difficulties due to a string of unanticipated tax and regulatory changes that have hit the casino and bingo industries in the UK, magnifying the impact of the recession.

Apollo is no stranger to the gambling market, counting America’s biggest casino operator Harrah's Entertainment in its portfolio. Last month, Apollo bought bonds in the debt-laden casino chain to give it more power in the event of a debt restructuring. Alongside Blackstone and TPG, the firm bought Harrah's in a $27bn buy-out in January 2008. Despite streamlining measures, Harrah's still owed around $18bn last month.

Gala is one of the UK’s market leaders, operating almost 2,000 licensed betting offices, 148 bingo clubs, 27 casinos, 2 greyhound stadia, a UK telephone betting business and an online gambling business.

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