Buyers ready to bid in Tote autumn sale

Jul 22 2008 by Alex Turner, Liverpool Daily Post

SPORTECH and Betfred are queuing up to put their money on the Tote after the Government yesterday said horse racing’s trackside bookmaker would finally be put up for sale this autumn.

Walton-based football pools operator Sportech has reaffirmed its interest in Wigan-based Tote, which Labour first pledged to sell in its 2001 election manifesto.

Sportech chief executive Ian Penrose said: “We are still interested and when the process is progressed further we will look at it carefully.

“Today’s announcement is another step along that path.”

Warrington-based Betfred also confirmed that it was preparing to join up to 40 other bidders for the bookmaker. A Betfred spokesperson said: “If and when the Tote does come on the market, we would be very interested in purchasing it.”

Reports suggest that investment bank Goldman Sachs, which was hired in April to advise on the sale, has valued the 529 betting shops and pools business at between £260m and £290m amid the current economic climate.

This valuation is much lower than the £400m bid submitted last year by a consortium of racetrack owners, which was turned down by the Government because it was backed heavily by private equity.

The consortium’s second attempt at securing Tote without support from private equity was then rejected for being too low, at a reported £320m. The Government said that, while it was working towards a sale by autumn, it would review the plans after completing further “detailed work”.

Sports Minister Gerry Sutcliffe said: “It is clear that the Tote is a highly attractive asset which would enjoy significant interest if brought to market in an open auction.

“If a sale of the Tote were to proceed, the Government would emphasise in any sale document- ation and process both the quality of the Tote’s workforce and the North West as an excellent business destination.”

alex.turner