UK betting operators Ladbrokes and Gala Coral Group have announced plans to sell 359 betting shops to rivals Betfred and Stan James in a deal that will allow the pending Ladbrokes-Coral merger to conclude this month.

Over the weekend, Ladbrokes and Gala Coral Group issued joint statements detailing their plans to sell 322 betting shops to Betfred and a further 37 shops to Stan James.

Lads-Coral expect to realize a total of £55.5m from the sale, which the companies plan to use to repay debt. Lads is giving up 185 shops for total consideration of £29m, while Coral is shedding 174 shops for £26.5m. Betfred is paying £55m for its 322 shops, while Stan James is paying only £500k for its 37 shops.

The sale is expected to be “slightly dilutive” to Lads, Coral and the enlarged group’s earnings. The shops in question generated earnings of £16.8m in 2015, making the sale an earnings multiple of 3.3x.