Coral Eurobet, owner of Hove greyhound stadium, is being sold to private equity firm Charterhouse Development Capital for £860 million.

The deal ends months of speculation about who would buy Coral.

The group, which also has 870 UK betting shops and another stadium in Romford, is being sold by Morgan Grenfell Private Equity, a subsidiary of Deutsche Bank.

MGPE has owned the 76-year-old group since February 1999.

Ladbrokes, Britain's largest betting shop chain, was earlier this year tipped to bid for Coral while gaming groups Rank and Stanley Leisure had also been touted as possible parties interested in the shops.

The deal, conditional on European Commission competition clearance, is expected to be formally completed next month.

Management are also buying into the firm.

Chief executive Bob Scott will step down on completion of the deal and be replaced by managing director Vaughn Ashdown.

Mr Scott said: "Coral Eurobet has enjoyed tremendous success under MGPE's ownership. I am delighted the company is being acquired by Coral Eurobet's management with the backing of Charterhouse Development Capital."

Mr Ashdown said: "This deal provides an ideal platform from which we can exploit the anticipated growth in betting and gaming, both in the UK and internationally."

MGPE director Jonathan Derry-Evans said the group had been a successful investment.

The private equity firm bought Coral from Ladbroke for £390 million.

Ladbroke had bought the chain from Bass for £363 million in 1997 but the deal was blocked by competition authorities and Ladbroke had to sell it.

Charterhouse chief executive Gordon Bonnyman said: "We have a long standing reputation for buying industry-leading businesses in partnership with management teams that can unlock long-term growth."