Ireland Said to Pick Davy to Advise on Lottery License Sale

Ireland’s government picked Davy, the nation’s largest securities firm, to advise on the sale of the license to operate the National Lottery, according to a person with knowledge of the matter.

The securities firm is negotiating final terms with the Ministry for Public Expenditure and Reform to handle the sale of the 20-year license, said the person, who asked not to be named because the appointment is not yet public. Ireland may raise as much as 600 million euros ($772 million) from the sale, the Irish Independent and the Irish Times reported.

The government, which is seeking to sell 3 billion euros of state assets under its international bailout agreement, has earmarked some of the proceeds from the license sale to build a national children’s hospital. The state paid Dublin-based Davy 615 euros to study options for the license earlier this year, Public Expenditure and Reform Minister Brendan Howlin told lawmakers on May 8.

A spokesman for Davy wasn’t immediately able to comment.

Howlin said in April that the percentage of lottery revenue going to so-called good causes will remain at 30.5 percent under a sale agreement. An Post, the state-owned postal service that operated the National Lottery since its inception in 1986, has said that it will bid for the new license.

Camelot Group Plc, operator of the U.K. National Lottery, Tatts Group Ltd., Australia’s largest lottery company, and Italian group Lottomatica SpA’s subsidiary Gtech Corp., may bid for the license, the Sunday Independent reported on July 22.

Separately, the National Treasury Management Agency said today London-based Barclays Plc will advise the state on the sale of government-owned gas company Bord Gais Eireann’s energy retail unit.

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