According to a Sky News report, a racing consortium, that includes former Merrill Lynch trader Alex Frost, has reached a GBP 130 million deal with Betfred.
The report details a GBP 20 million payment to Betfred from Alizeti Capital, a consortium of “racing industry heavyweights”, as an upfront payment for a minority stake in the Tote aiming towards a full takeover of the well known brand in the next five years.
Quoting unidentified sources, Sky News said Alizeti aims to “transform the Tote’s profile and financial performance even as it relinquishes the on-course pool-betting monopoly it has enjoyed for years.”
Another recent GBP 20 million acquisition of horseracing industry loyalty programme, Rewards for Racing (R4R), will provide the Tote access to around 900,000 members. R4R lists Bet365, Betfred, Coral and Betfair as members.
Alizeti’s fund raising pitch to prospective shareholders apparently refers to a three-to-five year partnership between Alizeti and Betfred, in which Alizeti would own 25 percent of the Tote’s business-to-business operation and a 75 percent stake in its digital and on-course consumer betting division.
Read the full report here.