The completion of the £3.6billion deal to sell the hotel business to the Hilton Hotel Corporation, will allow Ladbrokes to focus entirely on its betting business and the growth opportunities that brings, particularly online and through the introduction of innovative products and new technology.
The stand-alone Ladbrokes, which will be valued between £3bn to £4bn including debts, is expected to return a substantial amount of cash to its shareholders.
While Hilton revealed last week that Ladbrokes was already being courted by private equity companies, Chief Executive Chris Bell said he is keen to run an independently quoted company and he will do whatever maximises shareholder value.
Industry analysts suggested that an independent Ladbrokes will have more options for expansion, as it could enter the US market starting to take bets from US citizens. And although Chief Executive Chris Bell said there was no big acquisition target on the horizon, a quoted Ladbrokes would also have an acquisition currency for participating in what is expected to be a big year for consolidation in the gambling market.
Industry analysts added that an independent Ladbrokes may look to buy Rank Group before Ladbrokes itself becomes vulnerable to a bid.
UPDATE: Chris Bell, CEO of Ladbrokes, confirmed that an expansion into the US market remains on the company\’s list to review. Bell said that Ladbrokes has probably the most successful poker site in Europe and strategic partnerships in Scandinavia and Greece and now it may seek new deals in Europe and Asia.
Bell also played down reports that private equity bidders and rivals are ready to swoop. “We\’re in here for the long haul. We have a strong strategy,” he said.
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