Gaming machine operator Tatts Group Ltd
(ASX:TTS) has bought the NSW Lotteries from the State Government for $805 million.
CEO Dick McIlwain says the acquisition is a logical and natural expansion of the company’s lottery businesses in Queensland, Victoria, Tasmania, the Northern Territory and the ACT.
Tatts reported earnings before interest, tax, depreciation and amortisation of $119 million in 2009 and says this acquisition is expected to produce an additional $120 million by 2014.
Mr McIlwain says Tatts considers the NSW Lotteries acquisition to be low risk and will be funded with debt and cash.
Treasurer Eric Roozendaal says the group will be given a 40 year licence to run the lotteries, saying the deal will deliver over $1 billion to taxpayers.
For the 12 months to June 30, 2009 Tatts Group paid a total 21 cents a share in dividends to shareholders.
