British bookmaker Betfred has begun its plans to divest its interest in the Tote racing brand after striking a £130 million ($174.7 million) deal with a consortium of racing industry juggernauts.

Sky News reported that Alizeti Capital, led by former Merrill Lynch trader Alex Frost, made an upfront payment of £20 million ($26.88 million) to Betfred for a minority stake in the Tote several days after the UK government imposed sweeping reforms in its gambling policy.

Betfred and Alizeti had been talking about the deal for several months now, with much of the discussions centering on valuing the Tote for £130 million ($174.7 million). Under the agreement, Alizeti was given an option to increase its investment in a span of five years to complete a full takeover.

A source familiar with the deal told the news outlet that Frost convinced a group of investors to contribute and raise £65 million ($87.36 million) in return for a 65 percent stake. The investors were reportedly known figures in the horse racing industry.