Indonesian to buy London casino

London Clubs wants to open a series of new casinos

One of Indonesia's richest men is set to buy the leading London casino Les Ambassadeurs for £115m.

Tobacco tycoon Putera Sampoerna is understood to be behind a firm buying the Mayfair venue from casino firm London Clubs International.

Les Ambassadeurs is known for the extreme wealth and cosmopolitan nature of its clientele.

London Clubs said it would use the proceeds of the deal to reduce debt and fund new casino openings across the UK.

Volatility

The company has been awarded licences to open six casinos in London, Leeds, Glasgow, Manchester, Manchester and Nottingham, part of a new wave of venues planned following deregulation of the industry.

Les Ambassadeurs, owned by London Clubs since the 1980s, made a profit of £5.6m last year.

The disposal of Les Ambassadeurs will allow the group to develop its casino estate Michael Beckett, London Clubs International

However, the casino has had a history of volatile earnings.

Its recent performance has been affected by the 7 July bombings which deterred some patrons from visiting London.

"The disposal of Les Ambassadeurs will allow the group to develop its casino estate and build out the new licences it has secured in London and the regions," said London Clubs chairman Michael Beckett.

"These casinos will benefit to a greater degree from the deregulation of the UK casino industry."

Mr Sampoerna is buying the casino through the Twinwood Limited investment vehicle.

He is developing a chain of luxury casinos after selling his clove cigarette business to Philip Morris for $5.2bn last year.

The deal must be approved by London Clubs shareholders.