£70 million snag for Tote consortium
The sale of the state-owned bookmaker, the Tote, has came across yet another stumbling block as the racing consortium looking to purchase it has been told by the government that they must raise £70 million from the industry before any bid will be approved.
The consortium, made up of Tote management staff, the Racecourse Association and the Racehorse Owners Association was told by the government that their previous bid, backed financially by Lloyds Development Capital (LDC) through a £300 million loan, was too reliant on debt.
The government made a pledge when they decided to sell the bookmaker that any sale would need to benefit the racing industry and were accordingly concerned that if the consortium went bust, the Tote would be in the hands of LDC.
However, the consortium came back with a revised structure for their bid last week that satisfied the Department for Culture, Media and Sport.
Although there appears to be only one more hurdle for the consortium to jump, amassing £70 million from the industry will not be a walk in the park.
Editor, Jackpot.co.uk - 2007-06-13 11:06:39