Development in Lottery sale
Last Updated: Friday 18th June 2010, 13:07
We promised to keep you up with developments when the news first broke last year and now into the New Year it looks like things may finally be happening in the sale of the UK Lotto company Camelot. There’s been speculation for a long time but it finally looks as though we will soon be finding out who the new shareholders of Camelot are to be.
A request has been put in for the deadline for bids for the National Lottery operator Camelot to be put back. This request has been granted and the deadline for bids for the company has now been put back until February 23rd.
Plus after much speculation we can actually tell you who some of the main bidders are. Richard Branson of Virgin is bidding with Dutch Owned charity lottery operator, People’s postcode lottery, the French Lottery operator Francaise des Jeux is bidding with several private equity firms and other companies are also showing interest in bidding before the extended dealine.
All six companies are expected to make another bid even though there has been much speculation that some firms may pull out over doubt’s about Camelot’s hold on the UK Lottery license.
Camelot’s license for the Lotto runs for another nine years and can be renewed for a further five but if we were then to see more lottery companies appear in the UK it may have a big effect on the value of the company.
Many of Camelot’s current shareholders are struggling in the recession. Cadbury for example have just fought off a hostile takeover and therefore wants to see their stake in Camelot as it’s not core to their business, the other companies involved are all of the same thinking in current economic times.