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BETFRED REVEALS PLANS IN BID FOR TOTE

Posted on 5/19/11

Strong commitment to the future of horseracing, says bookmaker
 
Should UK Bookmaker Betfred's bid for the tote be successful, the firm has revealed it will return GBP 11 million to horseracing in 2012,  followed by a minimum of GBP 9 million in each of the subsequent six years if racing meets a number of commercial agreements.
 
The bid, valued at around GBP 200 million contains year-on-year payments, combined with Government's commitment to return 50 percent of the net proceeds of the sale to Racing, representing a substantial offer to the British horseracing industry.
 
Fred Done, Executive Chairman of Betfred said: "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 the horseracing industry. We're also delighted that the Government has chosen to return 50% of the net proceeds of the sale to Racing, so I believe a successful Betfred bid will see a financial return of at least GBP120 million.
 
"We have a forty 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."
 
Should the bid succeed, the firm says it will place the contribution to Racing on a more formal, certain and transparent basis than is presently the case and intends to enter into commercial arrangements with racecourses and others.



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