Both Federal Group and online betting company Betfair have responded cautiously when asked if they were likely suitors for TOTE Tasmania.
Treasurer Michael Aird yesterday announced the Government's intention to sell the wagering business, which commentators have suggested could realise up to $80 million for State taxpayers.
Existing players in the gaming industry, including Tabcorp, Betfair and the Federal Group, have all been suggested as potential buyers.
When asked if the group had ruled out buying the business, Federal Group corporate affairs manager Brendan Blomeley said that it would be interesting to see how the sale unfolded.
"We will be monitoring the sale closely," he said.
Betfair media and communications manager Hugh Taggart said that the company would consider the opportunity.
"We haven't made a decision yet but we'll certainly consider the options and take the appropriate steps," he said.
Financial analyst Tom Ellison said that the State Government could expect to receive between $80 million and $100 million from the sale.
"It's very difficult to value Government businesses because their financial statements don't always give a clear picture of the entities' underlying profitability," Mr Ellison said.
"(But) if a company like Betfair or Tabcorp were to buy TOTE they could probably get enough synergies to justify a sale price of between $80 and $100 million."
The TOTE will be sold through a competitive bid process due to be completed by the end of June.
Yesterday, Shadforths private client advisor Matthew Torenius said that it was impossible to put a price on buying the TOTE.
"I think the Government had decided to sell due to other structural reasons in the gambling sector," Mr Torenius said.
"There is obvious cash flow within the business, and companies such as Tattersalls, Tabcorp, maybe Betfair and even the Federal Group would be obvious players to buy the business." (Credit: The Examiner)
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