P.M. BRIEFING : Grand Met to Sell Betting Shops to Help Pay for Pillsbury Acquisition

Grand Metropolitan agreed today to sell its bookmaking business, Britain’s second-largest legal betting chain, for $1.09 billion to help pay for its $5.8-billion acquisition of Pillsbury Co.

Under the deal, Grand Met said it will sell its William Hill chain of Mecca legal betting shops to Walker PLC, the beverage, leisure and real estate group.

Grand Met, which is undergoing a restructuring that will focus on the company’s food, beverage and eye-care business, said the completion of the agreement was expected Oct. 17, subject to approval by the Office of Fair Trading.

Grand Met sold 199 betting shops in London to Brent Walker last spring and said it was also negotiating to sell another 45 bookmaking shops in London and others in Ireland and Belgium.

The statement said total proceeds from the sale of its betting and related interests were expected to raise about $1.2 billion, including $40 million from disposals earlier this year.