London Clubs Agrees to Harrah's Takeover Offer

31-Aug-2006, 07:58

London Clubs said on Thursday it had agreed to a takeover offer from the world's biggest casino operator Harrah's Entertainment worth 279 million GBP ($530million).

The 125 pence-a-share recommended offer represents a premium of around 27 percent to London Clubs' closing share price on Wednesday, the two companies said.

Harrah's said London Clubs provided an ideal launch pad for expansion in Britain, where a new wave of licences for Las Vegas-style casinos are due to be approved, and in Europe, in particular Spain.

London Clubs has six casinos in Britain and holds licences to develop five more. Harrah's Chief Executive Gary Loveman said: 'London Clubs International has one of the leading positions in the UK casino market and through the new licences that it has recently been awarded will be able to further enhance its position.'

London Clubs Chairman Michael Beckett said: 'Harrah's Entertainment has the resources and expertise to fully leverage the development opportunities that London Clubs International has in its new licences.'
London Clubs shares jumped 31 percent to 129 pence by 8:09 a.m., valuing the group at around 288 million pounds.