Royal Mail agrees to sell its stake in Camelot

Royal Mail has reported agreed to sell off its 20 per cent stake in Lottery operator Camelot.

Camelot is expected to reach the top end of £300-£400 million price range.

Apart from Royal Mail, chocolate maker Cadbury, Fujitsu of Japan, French electronics group Thales and banknote printer De La Rue possesses stakes in Camelot.

Camelot has a nine year licence to operate the lottery along with an option to extend that for another five years.

Speaking on the issue, a person familiar with the matter said, "If Royal Mail had stayed in as a minority partner, it would have made a sale of the business pretty tricky."

The list of potential bidders may include lottery operators such as Française des Jeux, Lottomatica and Sugal & Damani.

aSome private equity firms such as General Atlantic, CVC Capital Partners and Cinven may also show interest.