Ladbrokes has agreed to sell its Italian retail betting and gaming business to an affiliate of Italian gaming group Cogetech for about €5.25m in cash.

The consideration payable is subject to adjustment based on the actual net financial position of the business at the time of completion of the sale. Any proceeds will be used to pay down debt.

Under the terms of the deal, Cogetech will also assume responsibility for about €18m of guarantees currently provided by Ladbrokes.

Ladbrokes said it took the decision to exit the Italian retail market last August due to revenue growth being below expectations, increased competition in the market place, and the high level of further investment required to achieve critical mass.

In 2009 the Italian retail business made a loss of £9.9m and at 31 December 2009 the carrying value of the business was £26.7m.

Source: Yahoo News

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