CVC chases National Lottery provider Camelot

According to the Financial Times, the preferred bidder is likely to be announced next week.

Bidders to have dropped out of the auction reportedly  include private equity groups BC Partners and Providence Equity Partners, the French lottery and games operator Françaises des Jeux, and a joint approach from Sir Richard Branson and the Dutch People’s Postcode Lottery.

The Ontario pension fund is attracted to the deal as the Camelot group’s share of lottery sales offers a stable income, the report said.

Pension funds typically take interests in companies via their investments in private equity funds. OTPP has taken to investing directly into companies, buying Acorn Care and Education from Phoenix Equity Partners in January for an estimated $245m.

The Canadian public fund also holds a 49 per cent share of Bristol airport, 48 per cent of Birmingham airport and 26.7 per cent of Northumbrian Water, all in the UK.

Camelot was put on the block after four of its five shareholders - Cadbury, Thales, De La Rue and Fujitsu – put their 20 per cent stakes up for sale last April. Fifth shareholder Royal Mail followed suit in December.

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