Vic premier to sell share in racehorse

The Victorian premier will offload his share in a racehorse at the centre of a conflict of interest claim over a part owner and businessman who won a million-dollar state grant.

Premier Denis Napthine had denied a conflict of interest over a government decision to grant $1.5 million to meat processing boss Colin McKenna, with whom he owns racehorse Spin the Bottle.

Dr Napthine on Friday said he would sell his stake in the five-year-old mare, but only because she wasn't performing.

"She's had a chequered racing career, the last couple of runs haven't been the greatest runs in the world, and on the advice of the trainer, he has suggested we sell her," he said.

The Labor opposition had argued the taxpayer-funded grant to Mr McKenna's business raised serious questions about the grants process.

But it was defended by the premier, who said he was not directly involved in his government's decision to approve it.