Coral today confirmed that it is to sell Gala Bingo for £241m.
The deal with UK investment trust Caledonia Investments will include the Gala Bingo retail division, comprised of 130 bingo halls.
Gala Coral will keep control of the GalaCasino.com and GalaBingo.com websites. Gala Coral will work with Caledonia Investments, and will retain the Gala name.
Gala Bingo has 1.1 million members and accounts for 38% of the retail bingo market in the UK. The sale of this asset will allow Gala Coral to concentrate on developing its bookmaking businesses and online operations.
Carl Leaver, chief executive of Gala Coral said: "The sale is another transformative step for Gala Coral Group, following the turnaround of the business over the past few years."
Gala Coral is in the process of being bought by Ladbrokes. The sale announced today is seen by Gala Coral as paving the way for the completion of that deal, as the bingo business was not included in the plan for the merger with Ladbrokes.
The purchase of Gala Coral by Ladbrokes is subject to approval by the Competition and Markets Authority. If approved, the merger will create the UK’s biggest bookmaker. A final decision is expected to be made by early next year.