Tabcorp, the Australian lottery and betting operator, has announced that it received an improved offer for its Media and Wagering division from Apollo Management, a global private equity giant.
The offer is worth 4 billion Australian dollars and is currently being considered by the Tabcorp board of directors. Last week, Tabcorp received an offer of 3.5 billion dollars for the wagering division from Entain, the British sports betting and gambling company which owns big international brands like Bwin, Coral, Ladbrokes, PartyPoker, and Sportingbet.
Evaluating the offer from Entain, analysts at J.P. Morgan, the famous global bank and investment company, came to the conclusion that the actual value of the Tabcorp wagering business would be 3.68 billion dollars, slightly higher than Entain’s offer.
The bid from Apollo Management surpasses that threshold and has a good chance of being accepted. However, the proposal would still have to clear a number of extra hurdles, including due diligence, financing, regulatory approval and consent from all relevant third parties.
Earlier this year, Tabcorp received several unsolicited offers for its Media and Wagering division. One of those offers came from Fox Corporation, the big U.S. media business owned by the Murdoch family. At the end of March, the Australian company decided to reject all offers and wait for improved ones. Tabcorp is valued at around 10 billion dollars, while the Wagering and Media division controls around 44% of the local sports betting and racing market.