Gaming firm to sell UK dog tracks

Six UK greyhound tracks have been put up for sale by gaming group Wembley as part of a move which will lead to the break-up of the group.

Wembley announced the planned sale as it revealed it was to offload its US gaming division to BLB Investors. US gaming consortium BLB will pay $339m (£182.5m) for the US unit, although the deal is subject to certain conditions. BLB holds a 22% stake in Wembley and last year came close to buying the whole firm in a £308m takeover deal. Shares in Wembley were up 56 pence, or 7.6%, at 797p by mid-morning.

The sale of the US gaming unit will leave Wembley with its UK business. This includes greyhound tracks at Wimbledon in London, Belle Vue in Manchester, Perry Barr and Hall Green in Birmingham, Oxford and Portsmouth. Analysts have valued the six tracks at between £40m-£50m. The US business accounts for about 90% of Wembley's operating profit and consists of operations in Rhode Island and Colorado. BLB's purchase of the US unit is subject to the agreement of a revenue-sharing deal being struck with Rhode Island authorities. Wembley said that, once the deal was completed, it anticipated returning surplus cash to shareholders. "Whilst the completion of the sale of the US Gaming Division remains subject to a number of conditions, we believe this development is a positive step towards the maximisation of value for shareholders," said Wembley chairman Claes Hultman. Wembley sold the English national football stadium in 1999 to concentrate on its gaming operations.
