Bankers called in as Gala lines up a float
THE £1.8bn flotation of gaming giant Gala has moved a step closer with the appointment of three investment banks to advise on the deal.
Merrill Lynch, which has been given the lead role, will be supported by UBS and Deutsche Bank.
Gala, bought by private equity groups Candover and Cinven in 2003 for £1.24bn, is Britain's largest bingo operator. Chairman John Kelly could be in line for a multi-million pound windfall if the listing goes ahead.
No decision has been taken and Merrill has simply been asked to weigh options. But a float is the preferred route.
News of the plan followed shortly after the Gambling Bill was passed. Gala, with 166 bingo clubs and 27 casinos, will be among the prime beneficiaries of changes to the law, which include allowing prizemoney to be rolled over into bigger jackpots.
UBS has also advised on the sale and leaseback of six Thistle Hotels to property group Topland for £185m.
Five of the hotels are in London and one in Edinburgh. Thistle, owned by Singapore investment company BIL International, will let the buildings on 30-year leases.
? Private equity group 3i is set to continue-its recent spate of exits by appointing Close Brothers to groom Environment Resources Management for a £200m-plus sale.
ERM, which employs 2,500 people in 37 countries, advises governments and companies on environment and related risks such as climate change and health and safety. Its clients include the likes of Railtrack, Shell and ICI.
Though a sale is thought to be some way off, bidding is expected to be fierce with both trade and private equity buyers already preparing to make an offer.
