Betfred Makes USD325m Takeover Bid for The Tote

By Community | May 17, 2011

Bookmaker Betfred it has made an offer to buy state-owned bookmaker the Tote in a deal worth close to £200m (US$325m) in cash.

Betfred claimed it supported the government’s pledge that 50 per cent of the net proceeds from the sale would be put back into the racing industry and also said it would make a contribution to the racing industry of £11m ($17.9m) in 2012 and would make a contribution of at least £9m ($14.6m) to the industry each year after that.

Betfred released a statement, saying: “Betfred’s proposal ensures the government has a complete exit from the Tote, secures value for the taxpayer, delivers support to the racing industry and provides enhanced opportunities and security for the Tote’s employees and other stakeholders.”

Betfred revealed that a decision by the government in relation to the sale was imminent after the coalition government said last year it would sell the Tote, which takes bets on horse racing, soccer and other sports.

A consortium led by ex-British Airways and Liverpool FC chairman Sir Martin Broughton is also reported to be in the running to takeover the business.