Betfred To Sell Tote For £130M
May 23, 2018
The big news in the industry this week is that UK bookie Betfred have reportedly agreed to sell a stake in the Tote to a consortium of major figures in the racing industry, with a view to the consortium taking full ownership in the next few years.
There has been months of speculation regarding a potential deal for the Tote, with Betfred’s co-owner Fred Done reportedly looking to sell a portion of his stake. In the last few days, it has become clear that the deal could be bigger than first anticipated.
As reported by Sky News, the company in question are Alizeti Capital, who have reportedly now made a £20million payment up front for a minority stake. The stake itself is not really the talking point, as the move is expected to be part of a strategy for the consortium to complete a full purchase of the Tote over the next five years.
This deal will reportedly be in the region of £130million when all is said and done, which would see Fred Done and Betfred be relieved of their ownership. As part of the deal, the loyalty programme ‘Rewards for Racing’ will also be under the ownership of the consortium.
Speaking to Sky News, a figure who is backing the deal had this to say:
“At the end of the partnership Alizeti Capital will buy out Betfred’s remaining equity stakes according to a clearly defined formula,”
Although the Tote will be removed from the majority of British racecourses in July, the investors clearly believe that the Tote will still have a very bright future. Betfred initially bought the Tote back in 2011 in a deal that was worth £265million, so this move will be for considerably less.
The new owners are expected to invest in new technology and marketing for the Tote brand, which they hope will see a revitalisation of the product.
Regarding the future of the sellers Betfred, they are likely to continue focusing on sports betting. As matched bettors, we expect to see plenty of betting offers available on the Betfred online website over the next couple of years. Here at MatchedBets.com, we will show our members exactly how to make an expected profit from any offers with our easy to follow step-by-step guides.