Ladbrokes shareholders approve Gala Coral merger

Ladbrokes shareholders have comprehensively given their approval for the proposed merger with Gala Coral despite a final attempt by Dermot Desmond to persuade voters to reject the deal.

On the first resolution which asked shareholders to approve of the deal, 96.36% voted in favour at this morning’s meeting, while the three other resolutions linked to the merger also passed with approval in excess of 94%,

Meanwhile the board also rejected a request from Desmond for a second vote once negotiations with the Competition and Markets Authority (CMA) are finalised.

In a statement to this morning’s general meeting of shareholders, Desmond reiterated many of the points made in last week’s open letter and presentation.

But he also requested that Ladbrokes’ shareholders are given the opportunity to vote on the merger for a second time when the CMA verdict is returned.

The CMA is likely to require a combined Ladbrokes Coral Group to sell off anywhere from 400 to 1,000 shops before approving the deal and Desmond pointed out that this could lead to an EBITDA loss of up to £70m.

“I therefore call on the Board to agree today not to disenfranchise its shareholders and to convene a General Meeting to put any deal negotiated with the CMA before us for our approval,” Desmond said.

However, in rejecting his request it now appears the CMA remains the final barrier before the merger completes, with the deal likely to be finalised in H1 2016.

Gala Coral chairman Rob Templeman said the vote was a “very important milestone” and reflected the compelling logic of the merger.

“Both Ladbrokes and Gala Coral continue to work constructively with the Competition and Markets Authority and a further update will be provided in due course,” he said.

Ladbrokes’ share price was down 0.73% to 109.20p following this morning’s trading.