Irish gambling operator Boylesports has expressed interest in buying rival company Ladbrokes Ireland. As previously announced, the latter is currently under court protection, so as to be able to carry out a restructuring plan.
Ken Fennell of Irish audit firm Deloitte was appointed by the High Court to examine Ladbrokes’ rescue plan, under which the gambling operator is to shut down 60 of all 196 shops currently operating on the territory of the Republic of Ireland. The closures will also result in more than 250 layoffs.
According to the latest information, Boylesports has discussed with Mr. Fennell the opportunity to purchase the struggling company. It seems that the gambling operator has been in talks with the examiner since April, when his appointment was announced.
BoyleSports, too, is likely to propose closures of local shops, yet its offering is expected to include better creditor terms. Ladbrokes Ireland’s creditors are predominantly landlords.
Previously, some of the operator’s creditors complained that it had offered inadequate compensation terms for giving up the leases on those of its shops that it has been planning to shut down.
Ladbrokes, in turn, told the landlords that if they do not accept their terms, it will request lease repudiation from the High Court.
In order to be able to buy Ladbrokes Irish, Boylesports will not only have to convince Mr. Fennell that the terms of its offer are better than the formerly submitted proposal, but it will also have to receive an approval from the Irish Commission for Competition and Consumer Protection. The latter will need to be informed immediately about the transaction, provided that one takes place.
Prior to being allowed to proceed with buying Ladbrokes Ireland, Boylesports could be asked by the regulator to dispose of some of its shops.
John Boyle, founder and Chief Executive Officer of Boylesports, refused to comment on his company’s bid to purchase its rival. Yet, he pointed out that their main goal is to always provide their customers with the best shops and to locate those in the best possible places. Mr. Boyle also noted that they are open to new opportunities.
As for Ladbrokes’ Irish division, it said that it remains committed to finding a way to save as many jobs as possible.
