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.