Ladbrokes has agreed to buy Coral Group in a £2.3b a share-exchange deal, creating the biggest bookie in Britain by betting shops.

The combined business, which will be listed on the stock exchange as Ladbrokes Coral Plc., creates a company with £2.1b annual net revenue.

Ladbrokes said that it’s placing 93m shares representing 10% its share capital to help fund the deal and slashing its dividend to 3p per share to shore up its finances.

Ladbrokes will have 51.75% of the enlarged company and will  issue new shares to the private-equity owners of Gala Coral Group, including Anchorage Capital Partners and Apollo Global Management representing 48.25%.