Tabcorp Holdings, the Australian lottery and betting operator, has confirmed that it has received offers from multiple companies for selling its lucrative wagering division.
Tabcorp’s “Wagering and Media” unit controls around 44% of the local sports betting and racing market. Following media reports which claimed the company had been approached about a possible acquisition, Tabcorp issued an official statement to clarify the situation.
“Tabcorp confirms that it has received a number of unsolicited approaches and proposals in relation to a potential transaction involving Tabcorp’s wagering and media business,” the statement read.
“The proposals were expressed to be confidential, indicative, non-binding and subject to numerous conditions including due diligence, financing and various regulatory approvals. There is no certainty that any transaction will occur.”
Tabcorp is Australia’s largest gambling company, with over 5,000 employees nationwide, providing lotteries, Keno, wagering and gaming products and services. The company’s board is now assessing the proposals, while the news drove stock prices up nearly 9%.
The company’s “Wagering & Media” unit generated revenue of 2.1 billion Australian dollars in its most recent fiscal year, with earnings of 371 million dollars. That’s a good result for the division, considering that many sport events were shut down during 2020.