NSW has cancelled plans to sell the state’s $500 million a year lotteries duties, leaving Australian and offshore pension funds searching for the next $15 billion opportunity.
In budget papers released on Tuesday, the state said it had considered scoping study findings and potential buyer appetite, before deciding to retain the income stream.
Consensus among the potential buyers is that the duties could’ve been worth up to 30 times annual earnings, or about $15 billion, if the state offered a 40 year or 50 year contract.Whoever bought it would’ve borrowed heavily to fund it, knowing the income stream was a tax payable to the state and ranked above just about everything else in the capital structure.
Instead, the private capital heavyweights will have to look elsewhere for their next chunky deal. There was nothing in the NSW government about any other potential asset sales, and is unlikely anything pop up in the coming year with an election on the horizon., which was spun out of Tabcorp in May.
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