Stanley 'Well Placed' For Casino Licence Auction

Stanley Leisure, the casino operator, yesterday said it was well placed for the auction of new casino licences as it detailed an expected £327m cash return to investors.

Investors will be able to take the cash, worth 250p per share, either as income (A shares), capital (B shares) or a mixture of both. Holders of A shares will receive a one-off special dividend, while those opting for capital will see the B-shares admitted to Aim and pay an annual dividend.

There will also be an 8-for-15 capital reorganisation so shareholders continue to hold the same proportion of the group's stock. The cash return follows the completion of Stanley's sale of its 624-strong betting shop business to bookie William Hill for £504m in cash.

Shareholder approval will be sought at an extraordinary general meeting on September 8, with cheques despatched on September 16. The shares rose 13½ to 557p. Bob Wiper, chief executive, said he was confident of adding five extra casino licences to its 41-strong estate before the new Gambling Commission is set up later this year. After that, most observers expect the commission to restrict licences to the 17 new casinos allowed under the 2005 Gambling Act.

"There will be a big bun fight, but we're well placed," said Mr Wiper.