Tabcorp has received multiple unsolicited acquisition proposals for its Wagering and Media Division, including from UK gaming leader Entain.
Tabcorp Receives Several Unsolicited Takeover Bids
Australian gambling giant Tabcorp Holdings Limited (Tabcorp) has revealed that it has received several unsolicited acquisition proposals for its Wagering and Media division. However, no firm proposals have been made so far.
Tabcorp is the largest gambling company in Austria as well as the largest provider of lotteries, Keno and wagering products and services within the country. While its Wagering and Media division has proven profitable over the years, it is still considered a non-core business segment.
For comparison, Tabcorp’s lottery and keno segment generated AUS$2.92 billion revenue as well as $542 million EBITDA in the previous financial year. Meanwhile, its wagering and media division generated $2.08 billion revenue and $371 million EBITDA.
According to Tabcorp, all received proposals were confidential, non-binding and subject to numerous conditions including due diligence, financing and various regulatory approvals. The company has clarified that there is no certainty than any transaction will take place.
Entain Confirms Interest in Tabcorp Takeover
UK-based sports betting and gambling leader Entain has come forward as one of the parties interested in Tabcorp’s wagering and media division.In a confirmation statement, the company had this to say:
” Entain plc (LSE: ENT), the global sports-betting and gaming group, notes the recent press speculation regarding a possible transaction involving Tabcorp Holdings Limited (‘Tabcorp’) in Australia and confirms that it has made a non-binding indicative offer to acquire its Wagering and Media business.”
Entain, which rebranded from GVC Holdings last year, said that the deal would greatly help the company’s goal of expanding its presence across additional regulated markets. Furthermore, the acquisition would create strong synergy with the gaming giant’s Australian branch.
According to Entain, which recently confirmed Jette Nygaard Andersen as its new chief executive, this would pave the way toward combining the assets into one leading, integrated multi-channel and multi-brand wagering company.
Entain first entered the Australian market in 2013 through its $22.5 million acquisition of Bookmaker.com.au and has been steadily bolstering its presence over the years. In 2018, the company successfully purchased betting and entertainment firm Neds, which was also established by Bookmaker.com.au founder Dean Shannon.
Entain is also considering a takeover of Swedish iGaming company Enlabs for $340.1 million. However, the deal is not yet fully certain as 10% of Enlabs’ board and shareholders have refused the bid, claiming that the takeover would undervalue the company.