OpCapita Prepares Bid for Gala Coral Bingo
The OpCapita investment group, best known for the takeover of the electrical group Comet, is thought to be preparing a bid for Gala Coral’s bingo business. It was announced earlier this week that Gala Coral is considering plans for a float and as a result they were looking to sell the bingo business for around £250 million.Since gaming tax has been reduced Gala Bingo has become a much more attractive asset. However, some investment groups have spoken out publicly saying they don’t think the brand is a good deal. This is due to falling customer numbers (often attributed to the smoking ban).
Nonetheless, the bingo business in general does seem to be enjoying a certain revival. Gala Coral recently said that its retail division, which includes the bingo assets, has shown “significant improvement” in admissions in the four months to the end of January and better cost management which has led to an increase in earnings.
OpCapita has also enjoyed the successful takeover of Game Retail which saw sales up 83% last Christmas. However, so far there has been no comment from either OpCapita or Gala Coral about the possible bid.