Entain Seeks to Acquire Tabcorp Wagering and Media Division
The Australian gambling titan Tabcorp Holdings Limited (ASX: TAH) has confirmed that it has received a number of unsolicited acquisition proposals for its Wagering and Media division. However, as of yet, no firm proposals have been made.
Tabcorp is Australia’s biggest gambling company and the largest provider of lotteries, keno, and betting products and services in the country. However, despite its Wagering and Media division being profitable over the years, it is not considered a core business segment.
In the last financial year, the Wagering and Media division generated $2.08 billion revenue and $371 million EBITDA. By comparison, the lottery and keno segments generated $2.92 billion revenue and $542 million EBITDA.
Tabcorp has said that all the proposals it has received were confidential, non-binding, and subject to a raft of conditions such as due diligence, financing, and regulatory approvals. Therefore, at present, there is no certainty that a transaction will take place.
However, the sports betting and gambling giant Entain (LON: ENT) has said that it is one of the companies that has put forward a proposal. The company released a statement that said,
“Entain plc, 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 went on to explain that a successful deal would help the company expand its presence into more regulated markets. Furthermore, it would allow for the creation of a strong synergy with the company’s Australian branch. This would ultimately lead to combining the assets into a large integrated multi-channel and multi-brand betting company.
Related:
- Entain looking for consumer opinion on re-regulation
- Inspired Entertainment and Entain reach new long-term deal
Entain has had a presence in the Australian market since 2013 when it acquired Bookmaker.com.au for $22.5 million and it has been building on that ever since. In 2018, the company acquired the betting firm Neds, which also established by Bookmaker.com.au founder Dean Shannon.
At the same time, Entain is considering a takeover of the Swedish company Enlabs for $340.1 million. However, nothing is yet certain after 10% of Enlabs’ board and shareholders rejected the bid claiming that it undervalued the company.
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