Gala Coral has announced it is to sell its Gala Bingo retail brand to investment trust company Caledonia Investments for approximately £241m. The deal is thought to include 130 Gala Bingo clubs and is conditional upon approval from the UK Gambling Commission, which Gala expects to be granted, though the wait for the seal of approval could take up to two months.
Caledonia will trade with the bingo clubs under the Gala brand through a licence agreement between both parties. Gala Coral will however retain both the Gala brand and the websites Galabingo.com and Galacasino.com.
It was announced in July that Gala Coral is to merge with fellow operator Ladbrokes. If the merger is gains the approval of the Competition and Markets Authority the newly formed group will be the biggest casino operator in the UK.
Gala Coral claim that the sale of Gala Retail is unrelated to the merger, which includes certain businesses of Gala Coral (but not Gala Retail).
The Gala Group acquired Coral Eurobet in 2005 and transformed it into an integrated betting and gaming company, with a reported 38% market share.