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SALE OF UK TOTE PROGRESSES TO NEXT STAGE
Posted 2/1/11 : Names of contenders invited to proceed will not be made public
The UK minister for tourism and heritage, John Penrose released a statement on the progress of the proposed GBP200 million sale of the UK Tote this week.
The Government has confirmed that the first stage of the open market process has been successful and that eighteen proposals had been received and reviewed for the purchase of the state-owned betting group.
Following the review, a selected number of parties (six according to Reuters) have been invited to advance to the next stage; however the Government will not be making the identity of these bidders public due to the "commercially sensitive nature" of the process. Favourites are rumoured to include Betfred, Gala Coral, a consortium led by Chris Bell (former Ladbrokes chief executive) and a group led by British Airways Chairman, Sir Martin Broughton.
The statement confirms that in the event that the Tote is sold on the open market it will honour the previous Government's commitment to share 50 percent of the net cash proceeds of the sale with UK Racing.
Paul Roy, chairman of the British Horseracing Authority, said: "Racing welcomes the Government's latest steps in resolving the future of the Tote, and particularly that Racing interests are central to a successful outcome. We look forward to continuing to work closely with Government to get the best outcome for the sport."
The Minister expects to update parliament "in the spring" (March/April/May) and has said it aims to complete the sale by May 2011.
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