De La Rue to raise £78m from lottery stake

26th Mar 2010 07:17

Banknote printer De La Rue has confirmed that it is selling its stake in UK Lottery operator Camelot Group as well as Camelot's sister company, Camelot Global Services.Press reports indicate that Premier Lotteries UK Limited, a company controlled by Ontario Teachers' Pension Plan (OTPP), has agreed to buy Camelot, subject to approval from the National Lottery Commission.De La Rue said it has agreed to sell its 20% holding in Camelot to OTPP for £77.8m in cash.The company will use the funds to reduce the pension fund deficit but will also return some of the surplus cash to shareholders via a share repurchase programme.The gross value of the investment in Camelot in the financial statements of De La Rue as at 26 September 2009 was £20.6m. Any gain on the sale will not be subject to Capital Gains Tax as De La Rue has sufficient UK capital losses brought forward, the company said.Other members of the Camelot consortium include Cadbury, Fujitsu, Thales and the Royal Mail.