Betfred Successful in GB£265m Tote Bid
DCMS has announced that a deal to sell the Tote to Betfred has been agreed for a total consideration of GB£ 265 million.
Racing will receive around GB£ 155 million through the deal. This will be made up of GB£ 90 million from racing’s 50% share of the net equity value of the deal after deductions plus a commerical payment by Betfred of GB£ 11 million for the year to March 2012 and six subsequent annual payments of GB£ 9 million.
Betfred will make an initial payment of GB£ 150 million. The UK taxpayer (or, at least, The Treasury) will receive GB£ 90 million from the deal.
As part of the deal Betfred has agreed not to sell on the pool betting part of the Tote business and will continue to pay Levy even if part of the business is subsequently moved offshore, until the current consultation on off-shore gambling licencees is completed.
Gambling and Racing Minister John Penrose MP said, “Today’ agreement will see racing receive not only their 50 per cent share of net proceeds but also the separate commitment from Betfred to racing of a significant ongoing stream of commercial payments, plus a contractually guaranteed cap on the number of job losses.”
The deal is expected to be completed in 4-8 weeks.
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