Tote back on the market in Brown’s sell-off plan
THE Government will again try to sell the Tote, the state-owned bookmaker which is based in Wigan, as part of a planned asset sale.
Prime Minister Gordon Brown was announcing the sale of a “portfolio of non-financial assets” in a bid to cut the budget deficit.
As well as the Tote – which was withdrawn from sale just 12 months ago because of turbulent market conditions – the Dartford crossing and the student loan book will also be sold.
Previous suitors which included North West-based Betfred and rivals Gala Coral, Paddy Power and Ladbrokes will surely be interested, particularly if they can drive down the price, which last year was between £250m and £290m.
The Tote operates more than 500 betting shops as well as a football pools business. It has 3,500 staff nationwide. In the year to the end of March it made operating profits before exceptional items of £22.3m on turnover of £2.9bn.
In a speech today Mr Brown will say the funds raised will help finance new capital investment and pay down debt.
The sale will also include Channel Tunnel rail link. The government’s 33% stake in Urenco, a European consortium which supplies equipment to enrich uranium for the nuclear industry, will be offered as well.
