Leisure & Gaming Only Trying to Sell Betshop

(SHARECAST) - Hard-up online betting group Leisure & Gaming has confirmed it’s in talks to sell trading subsidiary Betshop Group (Europe) Limited, not the whole company.

"Further to the announcement of yesterday, the company confirms that it is in discussions re the sale of its trading subsidiary, Betshop Group (Europe) Limited, only and is not seeking or expecting any offers for Leisure and Gaming plc," it said in a statement Tuesday.

On Monday, the firm said a possible share purchase agreement with Grupo Pefaco was unlikely and terms of exclusivity with Pefaco have expired without renewal.

Although it’s still talking with Pefaco, the group has received expressions of interest in the Betshop business since the expiry of the exclusivity period.

“While that remains a real possibility, following demand for repayment by the company's bankers on 6 October 2010, the company is working to see if a solvent solution can be achieved avoiding administration,” the group said yesterday.

Trading in L&G shares as been suspended since May while the company seeks to resolve cash flow difficulties.