After last week’s news that Wembley PLC is fighting a bribery suit in Rhode Island, where Nigel and Potter and Daniel Bucci are accused of offering $4 million to obtain additional operating licences for Lincoln Park, an announcement has been made that Wembley’s US gaming division has conditionally been sold to a consortium of private investors. BLB Investors is reported to be paying $339 million, much of which will be returned to shareholders.

The agreed purchase is contingent upon a long-term profit sharing deal for Wembley’s Lincoln Park operation with the State of Rhode Island. This has yet to be ratified by the Rhode Island State Legislature, although the Governor, President of the Senate and the Speaker of the House of Representatives have supported the concept. BLB is 50% Starwood Capital and 50% jointly owned by Kerzner International and Waterford, a gaming and leisure operator.

Last year an agreed deal with MGM Mirage fell through when BLB offered more for Wembley. However, the offer of $309 million was withdrawn when it became clear that Lincoln Park may have to compete with a Harrah’s casino complex nearby. Since then, the Rhode Island Supreme Court has banned a referendum on allowing the $600 million project. When trading closed yesterday Wembley was valued at around $480 million, and the company is said to have started the process for selling its UK gaming division, which includes six greyhound tracks. (E-02.08.05)

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