Ladbrokes has announced today that discussions regarding a potential takeover of Sportingbet have been mutually terminated.
Ladbrokes CEO Richard Glynn commented: "In August of last year we laid out a very clear organic strategy and investment programme for the reinvigoration of Ladbrokes. We were also clear on the intention to explore opportunities which enabled us to accelerate our progress that enhanced shareholder value and without exposure to non-mitigatable regulatory liability.
"The potential benefits and risks associated with a combination with Sportingbet were clear to us from the outset and have been well covered by the market. Having completed our analysis, we have been unable to agree a structure which delivers increased shareholder value within an acceptable regulatory environment. We have therefore agreed to end our discussions.
"Throughout this process we have remained fully focused on the execution of our organic strategy and continue to make good progress in its implementation, which remains on track. We are confident this plan will deliver significant value to our shareholders and we will continue to take a disciplined approach over potential opportunities to accelerate it."
Following press speculation, Ladbrokes announced in June that it was in highly preliminary discussions with Sportingbet regarding a possible offer. This weekend, however, has seen a number of reports emerge about Ladbrokes’ lawyers raising concern over risks associated with the Turkish arm of the Sportingbet business.
