Brexit & EconomyPoliticsPwC warns govt against Tote sale

PwC warns govt against Tote sale

The mooted sale of the Tote has come off the boil again after PwC advises government ministers against the £320m sale

The government’s advisors,
PricewaterhouseCoopers
(PwC), has told ministers the valuation of the
Tote was too low
and the £320m deal with a racing consortium risked being vetoed by the EU for
breaching state aid rules in a case of déjà vu of when the government first
decided to sell the Tote.

The government has put itself in a difficult position because it has made a
manifesto pledge to sell the Tote to the racing industry. However, a consortium,
consisting of Tote management and staff, the Racecourse Association and the
Racehorse Owners Association, has found it hard to meet a higher valuation of
£400m, according to Jackpot.co.uk.

The consortium’s bid is being backed by Lloyds but, after originally planning
to pay £330m of the required equity, it will now apparently only provide £250m.

There is also interest in the business from Gala Coral, the bookmaker and
casino operator, which is willing to lay out £405m for the Tote.

Further reading:

Tote joins race for faster odds

Budget 06: The main points

Read
the story in Jackpot.co.uk

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