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Gambling Group L&G In Trouble
If Betshop deal falls through, gambling group could be in trouble
Beleaguered gambling group Leisure and Gaming plc has still not closed a deal in negotiations to sell off the Betshop subsidiary to Grupo Pefaco, and failure to do so could have negative consequences for the company, reports Sharecast this week.
On Monday, the firm said a possible share purchase agreement with Grupo Pefaco was unlikely and terms of exclusivity with Pefaco had expired without renewal, although communications continue.
On October 6 the company's bankers demanded payment, placing further pressure on L&G's solvency
Trading in L&G shares as been suspended since May while the company seeks to resolve cash flow difficulties.
On September 28, the company adjourned the general meeting convened on that date to determine the way forward until October 12 in order to give the company time to conclude a share purchase agreement with Pefaco. At that time a consideration of Euro 5.3 million was being debated.
There are reports from the Dow Jones news agency that L&G directors are still in talks with Pefaco but are additionally responding to contact with other parties who have expressed an interest to acquire the Betshop business since the expiry of the exclusivity period. Failure to sell off the Betshop group could see L&G going into administration.
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