Sale possible as Arena considers its options

The operator of seven racecourses including Doncaster, Windsor and Wolverhampton, said the review has just started and there is no certainty it will result in an offer for the company.

“The company confirms it is reviewing possible options to increase value for its shareholders, which may include a possible offer for the company,” said Arena.

Last year billionaire property developers Simon and David Reuben upped their stake in Arena to 29.55 per cent, just shy of the 30 per cent level which would oblige them to make a takeover offer. They are thought to be considering a bid for the entire company.

The brothers own Northern Racing, which owns and operates ten racecourses in the UK, accounting for around 15 per cent of all UK racing fixtures.

However, racehorse owner Trevor Hemmings, who holds a 41.5 per cent stake in Arena, could prove a barrier to a takeover by the Reuben brothers.

Shares in Arena, advised by Investec, surged 14.3 per cent to 36.88p, a 4.62p gain.

Mr Hemmings, whose horse Ballabriggs won this year’s Grand National, is said to be after an offer of between 60-70p per share.

Arena has been hit by weak consumer confidence, smaller field sizes and a decrease in funding from the Levy – a toll on bookmakers that generates money for British horse racing.

In May it warned “2011 profitability is unlikely to see a material uplift from 2010”.

The group earned pre-tax profits of £3.5m in 2010 on revenues of £64m.

Arena took a 99-year lease on Doncaster Racecourse from Doncaster Council in 2007, when it reopened the course following a £34m redevelopment. Doncaster Racecourse is operated by a subsidiary of Arena in which Arena owns 81 per cent and Doncaster Council 19 per cent.

Arena declined to comment beyond the statement. A spokesman for the Reuben brothers also declined to comment.