Entain Continues Pursuit of Australia’s Tabcorp
Entain PLC (LON: ENT), the UK sports betting and iGaming group, has increased its efforts to acquire Tabcorp’s Wagering & Media division with an increased offer of AU$3.5 billion (US$2.7 billion).
Tabcorp (ASX: TAH), one of Australia’s largest racing companies, announced details of the new offer last week, which is significantly larger than the original offer of AU$3 billion that was made by Entain in early February. That offer was rejected together with a similar offer from another party late in March with Tabcorp saying that they “do not adequately value Tabcorp’s Wagering & Media business.”
The company also announced plans to carry out a strategic review to assess and evaluate all structural and ownership options with the aim of maximizing Tabcorp’s businesses for the benefit of shareholders.
However, these plans have not put off Entain and Tabcorp confirmed that it has received a revised unsolicited, non-binding and indicative proposal to acquire the Wagering & Media business for an enterprise value of AU$3.5 billion
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The revised proposal continues to be subject to numerous conditions including due diligence, arranging financing, receipt of all relevant regulatory approvals and obtaining various third party approvals and consents. The Tabcorp Board has not yet formed a view on the merits of the revised proposal and will assess it in the context of the previously announced strategic review.
If Entain’s bid were successful, it would become the biggest player in the Australian horseracing and sports betting industry. Tabcorp currently enjoys a 43.7% market share while Entain has a 4% share through its local sportsbook Ladbrokes.
It is thought that Entain may face competition from the Fox Corporation, the United States media giant, which is also interested in expanding its online betting portfolio.
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