Stanley Leisure in London Clubs bid

The casino operator Stanley Leisure is readying itself to launch a £250m bid for the troubled gaming group London Clubs International, the owner of the prestigious 50 St James casino in London.

The company is joining forces with the venture capital firm Hg Capital and has indicated it hopes to agree an offer of between 25p and 30p a share, valuing the business at more than £250m.

The pair plan to split LCI's portfolio of casinos between them in an effort to avoid potential problems with the competition authorities.

Stanley Leisure is said to be particularly keen on getting its hands on the bulk of LCI's London-based clubs including 50 St James, The Rendezvous off Park Lane, and The Palm Beach in Berkeley Street. Such a purchase would beef up its own portfolio of businesses in the capital, which includes the Mayfair-based Crockfords and the Colony Club and The Mint casino in South Kensington.

Hg Capital, meanwhile, is said to be particularly interested in the Les Ambassadeurs club, situated off London's Park Lane, as well as the company's casinos in Southend and Brighton, and its interests in Egypt and South Africa.

Hg has put together a management team to support the offer, led by Alan Goodenough – the former chief executive of LCI who left 18 months ago for health reasons. His involvement will anger many in the City as he was responsible for the company's disastrous investment in the Aladdin casino in Las Vegas, which filed for Chapter 11 bankruptcy protection in the US last year.

LCI shares have risen steadily over the past week, closing at 23.25p on Friday, amid speculation a bidder might emerge. A deal at 25p to 30p a share would value the equity at about £45m. LCI has some £210m of debt.