Betfred and management still in the running for Tote

BOOKMAKER Betfred – the Warrington-based business owned by Fred Done – and a management team based at the Tote’s headquarters both remain in contention to buy the business, according to reports.

An auction process is underway to sell off the Tote – the government-owned pool betting systems which has a presence at the country’s racecourses and a network of 516 betting shops. It is being run by London-based investment bank Lazard.

The Department for Media, Culture & Sport was due to publish a list of shortlisted bidders yesterday but reports state that both Warrington-based Betfred and the Tote management’s own bid, which is proposing a not-for-profit company is created where all profits made by the company are ploughed back into horseracing, have both cleared the first hurdle.

Lazard is understood to have received around 18 expressions of interest to date but these have now been whittled down to around six.

According to the Daily Telegraph, other bidders are understood to be rival bookmaker Gala Coral, a private equity-backed bid speared by ex-Liverpool Football Club and current British Airways chairman Martin Broughton, and a bid from track owners David and Simon Reuben.

In a statement to the House of Commons yesterday, the Minister for Tourism and Heritage, John Penrose MP, said that the open market process to auction the Tote has been “successful”.

“The Government is pleased with the level of interest shown in the process. 18 indicative proposals were received, each of which has been assessed against the Government’s objectives.

“Following this review, a selected number of parties has now been invited to advance to the next stage of the process where they will receive more detailed information.  The Government expects to be in a position to provide the House with a further update in the spring.”

The minister said the “commercially sensitive” nature of the process meant that it could not identify the bidders. However, he added that half of the cash which would be generated from the sale would be shared with the horse racing indudstry.

“The proceeds will be made available over the Spending Review period (or longer if the sale proceeds are particularly high) because of the broader fiscal position and the need to spend the funds consistent with EU state aid rules, but the Government will pay interest on the outstanding balance in the normal way,” he added.