UK gambling firm Gala Coral has sold its 130 bingo clubs, paving the way for the proposed £2.3 billion merger with Ladbrokes.

In a press release on Monday, Gala Coral announced the sale of its Gala Bingo retails division to private trust Caledonia Investments for £241m. The acquisition is expected to be completed in 2 months, upon approval from the UK Gambling Commission.

Under its new ownership, Gala Coral will retain both the Gala brand and the websites Galabingo.com and Galacasino.com and Gala Bingo retail will keep Simon Wykes as its CEO. The company also said that the proceeds of the acquisition will be applied in partial redemption of the 2018 senior secured loan.

Gala Coral also noted that the sale is unrelated to Ladbrokes-Gala Coral merger as Gala Retail did not form part of the proposed merged entity.