Tabcorp nets A$371m cash injection as institutional share offer completes
Australian wagering giant hails 97% share take-up as it seeks to boost coffers after Covid-19 struggles
Tabcorp has raised more than A$371m (£203m) in new share equity following the completion of a multi-million-dollar share offering to institutional investors.
A total of 114 million shares were created and purchased as part of the institutional share offering at a price of A$3.25 per share, representing a 97% take up rate by eligible investors.
Eligible institutional shareholders who elected not to take up their entitlements and certain ineligible institutional shareholders will receive A$0.45 for each share sold through this process, with payment due to be made at the end of August.
Tabcorp chairman Paula Dwyer welcomed the high take-up rate for the offer.
She said: “Following the completion of the entitlement offer, Tabcorp is expected to have a stronger balance sheet and greater financial flexibility in the current uncertain times.”
The institutional share offering completes less than a week after Tabcorp reported a full-year group revenue decline of 4.8% due to the closure of substantial operations due to Covid-19.
Tabcorp’s financial position took a second hit as the group was forced to declare an $870m statutory net loss following its acquisition of former rival Tatts Group.
A second entitlement offering will be opened to retail investors on Friday and is expected to give the group a further A$229m (£125m) additional cash injection as it hopes to return to profitability following the pandemic.
Under the second offering, shareholders can purchase one new share for every 11 existing Tabcorp ordinary shares held. Eligible retail shareholders will have until 5pm on 10 September to take up their new share entitlement.