Tabcorp rejects “inadequate” A$3bn offers for wagering and media division
Australian operator rebuffs initial approaches but does not rule out potential sale amid new strategic review
Tabcorp has rejected offers worth A$3bn (£1.6bn) for its highly sought after wagering and media business.
The ASX-listed operator had received “several unsolicited approaches” for the wagering and media division, from businesses including FTSE 100 operator Entain.
“The Tabcorp board has carefully considered the proposals and formed the view that the proposals do not adequately value Tabcorp’s wagering and media business,” Tabcorp said in a statement.
Entain approached Tabcorp about a potential carve out of the wagering and media business in February.
At the time, Entain CFO and deputy CEO Rob Wood suggested the deal would be “absolutely transformational” for the operator, which is currently live in the country with Ladbrokes and Neds.
However, Tabcorp has now revealed it will conduct a strategic review of its entire business to “assess and evaluate all structural and ownership options to maximise the value of Tabcorp’s businesses for the benefit of shareholders”.
The review of the business will be carried out and overseen by Tabcorp’s board of directors.
Options under consideration include a potential demerger, which could see the separation of the wagering and media business from the lotteries and keno division.
Tabcorp has also said it could still proceed with a potential sale of the wagering and media arm to a third party, despite knocking back initial offers
As part of this process, Tabcorp is resuming its strategic review of its retail-focused gaming services business.
“The assessment of Tabcorp’s strategic and ownership options includes, but is not limited to, a demerger or sale of one or more of our businesses,” Tabcorp chairman Steven Gregg said.
“Our clear objective is to ensure that we fully maximise the value of Tabcorp’s gambling entertainment businesses for our shareholders,” Gregg added.
Tabcorp has suspended its search for a new managing director and CEO while the strategic review takes place, allowing current MD and CEO David Attenborough to continue in the dual role on an interim basis.
Tabcorp shares were down 2.68% in early trading on the ASX.