Racecourse Sale Prompts Merger Talk

A £65.9million deal to
secure nine UK racecourses was completed on the sport’s biggest day of the
year.

As Silver Birch rode to
victory in the Grand National, Northern Racing, which owns Chepstow, Uttoxeter
and Bath racecourse among others, agreed a sale to property tycoons, the Reuben
Brothers.

The billionaire
brothers, who hold a 14% stake in Arena Leisure, are paying 200p a share, which
values Northern Racing at £65.9m.

Northern Racing also
owns racecourses at Newcastle, Brighton, Great Yarmouth, Hereford, Fontwell Park
in West Sussex, and Sedgefield.

It is thought that
these courses will be merged with Arena Leisure’s own portfolio at Doncaster,
Royal Windsor, Lingfield Park, Wolverhampton, Southwell, Folkestone and
Worcestor.

The buyers say they are
paying an 8.7% premium over the price before their original offer was made in
December.

But the 200p a share
price tag is less than the market was expecting, with Northern Racing trading as
high as 205p last Thursday.