Italy’s Lottomatica S.p.A has this morning announced the termination of its joint venture with Turkey’s Dogan Sirketler Grubu Holding A.S. The two companies had entered into a memorandum of understanding on February 16th 2009 forming the JV in order to participate in the tender for the privatisation of the Turkish national lottery.
In a stock market announcement Thursday, Dogan confirmed termination of the JV, saying that it had decided not to bid in the tender due to current market conditions.
The Dogan Lottomatica consortium was approved by Turkey’s privatisation administration earlier this year having met the preliminary requirements for participation in the tender, which will grant the winner a 10-year license to operate the state-owned national lottery Milli Piyango.
Other participants in the tender include Intralot, Turkcell, Austrian Lotteries and OPAP.
The privatisation process for the national lottery, which generates sales in excess of US$1 billion annually, is expected to commence in August.