Numbers thinned out for Lotteries JAMIE FREED November 4, 2009 Brisbane Times
"The field of buyers for NSW Lotteries has been narrowed to a handful. Among those believed to be on the shortlist is a consortium that counts the former Tattersalls boss Duncan Fischer as a member. Fischer's group will be competing against Tatts Group, which is headed by the former UNiTAB boss Dick McIlwain. When Tattersalls and UNiTAB merged to form Tatts in 2006, Fischer was initially set to take the top job but was forced aside after institutions preferred McIlwain to be at the helm. There is speculation that Fischer's consortium is backed by newsagents and private equity. In any case, the newsagents are still believed to be involved in the sales process at this stage, although many consider Tatts the frontrunner because it has the ability to extract the most cost savings. The shortlisted bidders have been invited to undertake due diligence, including entry to a data room and access to presentations by the management team. Formal suitability checks have been started as part of the auction process being run by Goldman Sachs JBWere. The final bids are not expected to be received until February, and the winner is therefore likely to be announced late that month or in March. The State Government will no doubt be hopeful of receiving the final payment by June 30."
TTS Price at posting:
$2.41 Sentiment: LT Buy Disclosure: Held
