Greece’s privatization fund has decided to relaunch a tender for a 20-year mutual horsebetting license after failing to accept an improved bid from gaming systems firm Intralot.
The Hellenic Republic Asset Development Fund (TAIPED) asked Intralot on August 20 to up its bid of 5.25 million euros for the exclusive right to organize and conduct mutual betting on horse races in Greece. The Greek firm was given until Wednesday to submit a new offer.
Intralot’s improved bid was believed to be linked to future revenues and as such was deemed too uncertain by TAIPED officials. Sources said it would have reached some 9 million euros.
This was the first time that the privatization fund has turned down an improved offer from an investor for any of the assets it is selling. Kathimerini understands, however, that TAIPED has received a letter of guarantee for 40 million euros from another bidder. The letter of guarantee was received by the fund two hours before the deadline for Intralot to improve its bid.
Global Family Partners, whose clients invested in the 652-million-euro deal for the OPAP gambling company last year, is thought to have offered 40 million euros for the horsebetting license during the tender process.
Sources said that Intralot is considering launching a legal challenge against TAIPED’s decision to relaunch the tender, believing that it matched the price at which the government was looking to sell the license.
The new tender is set to be launched within the next few days, with the aim of receiving binding offers by September 23.