Hard luck for CVC as it loses out in Camelot auction

Closing of the transaction is dependent on approval from Camelot regulator the National Lottery Commission.

Bidders to have dropped out of the auction are said to 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.

OTPP will be taking control from Cadbury, Thales, De La Rue, Fujitsu and Royal Mail. All of the shareholder organisations, bar Royal Mail, put their holdings up for sale last April, with the postal operating joining in December

Camelot is thought to have been attracted to OTPP due to what it saw as the long-term stability that it can offer.

Lee Sienna, vice president of Long Term Equities at OTPP, said, “Camelot is a world-class lottery business with substantial opportunities to grow both domestically and internationally. Teachers’ takes a long-term view of its investments, providing an environment of stability, commitment and continuity in the businesses it invests in, and is committed to supporting Camelot’s management team in delivering its plans for the business.”

The pension fund’s bid is believed to have been financed with £200m from Royal Bank of Canada.

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