Betfred sets out £200m stall for The Tote

BOOKMAKER Betfred, one of two final contenders in the long-running race to buy The Tote, said today its bid was worth £200m.

The family-owned Warrington company – seen as the second favourite to clinch the deal behind Sports Investment Partners a consortium led by business grandee Sir Martin Broughton – said it expects the Government to make a decision on the deal “iminently”.

In a bid to sway the decision in its favour, Betfred, led by Salford-born Fred Done, said its proposals delivered value to all stakeholders in the Tote, and also provides long-term financial backing for horse racing.

It said it had been released from some non-disclosure agreements it gave to the Government to detail the terms of its “fully funded” bid.

Executive chairman Mr Done said:  “Betfred is the best possible business partner for racing as it is best placed to unlock the value of the Tote.  The UK has the greatest horseracing in the world and we want the sport to thrive – that’s why our bid contains a strong commitment to racing.
 
“We have a 40- year track record of delivering growth and creating jobs. We want to buy the Tote because we want to grow and develop all of its component parts; and, in the long term, I believe the pool business will be the most important of those.
 
“We have designed our offer to meet all the criteria Government has laid out.   Our offer is fully financed and we have everything needed to conclude a transaction now.”
 
The company said its bid would give the  Government “a certain and total exit” the Tote, which was put on the market with a £400m price tag by the previous government. 

Betfred said “After an extended period of uncertainty for the Tote, Betfred’s acquisition will provide the stability needed to implement a long-term strategy and grow the business.”

As well as placing an enterprise value on the Tote – which has its headquarters in Wigan – of “close to £200m”, Betfred said it will continue to support the racing industry over the next seven years.

“Government has already pledged 50% of the net proceeds of the sale to racing. Betfred supports this pledge and under our offer, that 50% represents significant value to racing.

“Together with the proposals for the Tote contribution to racing, Betfred believes its offer will be worth over £120m to Racing over the next seven years,” the company said.
 
As an act of good faith and to ensure a smooth transition to the new ownership, Betfred said it would guarantee payments to the industry of £11m for financial year 2012.

In future it said said new commercial relationships with racecourses and other parties would create a minimum annual contribution of £9m.