Tote goes to shareholders to raise cash to accelerate final payment to Betfred

The consortium behind the UK Tote Group is seeking to raise a reported £20 million from shareholders to bring forward the final instalment of its payments to the operator's previous owners Betfred.

The group, formerly known as Alizeti, completed the agreement to buy the Tote in October 2019 in a deal believed to value the operator at around £115m.

A number of prominent racehorse owners and breeders are among the investors in the Tote, and the proposal is set to be presented to shareholders this week.

Communications and corporate affairs director Susannah Gill said: "We continue to make significant progress with our plans to rejuvenate the Tote. The business is profitable and with great momentum having seen the UK host pool profit grow by 40 per cent since acquisition, World Pool become an established and profitable new business model, and the international business has doubled.

"In line with the plan we have reinvested profits back into the business and this month we are offering existing shareholders the opportunity to purchase further shares at a price point over 30 per cent higher than last time.

"This reflects the progress that has been made and the exciting times ahead with the additional funds allowing us to make further investment in the business, continue exciting product development and pay the final deferred consideration costs in acquiring the business.”

The news comes following another important development for the operator which has come to an agreement with Britbet, which runs tote betting on 55 British tracks, to offer the Tote Guarantee on course.

Under the guarantee, previously only available on the Tote's website, the win dividend will always at least match the industry starting price. The availability of Tote Guarantee on course will be for an initial trial period of three months until the end of January 2022.

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