British bookmaker Betfred buys Tote for £265 mn

"Betfred is pleased to confirm that it has entered into binding contracts with the Secretary of State for the Department of Culture, Media and Sport to acquire ... the Tote for £265 million," it said in a statement.

"As part of the transaction, Betfred will be awarded an exclusive seven-year licence to operate pools betting on UK racecourses and is acquiring the Tote\'s 517 shops and online businesses."

Betfred will pay net proceeds of more than £180 million, excluding debt and pension contributions. The cash will be spilt equally between the government and the horse racing industry.

The bookmaker beat a rival bid from Sport Investments Partners (SIP), which is a consortium led by British Airways chairman Martin Broughton.

British finance minister George Osborne had pledged one year ago that his coalition government would sell the Tote, after more than ten years of wrangling over its privatisation.

The Tote, which has more than 4,000 staff and ploughs half its profits back into the horse racing industry, was set up by an act of parliament in 1928.

Betfred, which is based in Warrington in northwestern England, was co-founded in 1967 by its current executive chairman Fred Done. The firm boasts 840 betting shops nationwide and takes about ÂŁ4 billion in bets per year.

"Buying the Tote has been an ambition for years, so I am absolutely delighted," added Fred Done in the statement.

"The Tote is an opportunity I just could not miss. I love racing and I believe we have the greatest in the world.

"Over the coming months I will develop the Tote\'s relationship with the sport into a highly successful commercial partnership."

The enlarged Betfred group will retain the Tote brand on racecourses and will employ over 9,000 staff.

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