Tabcorp, the Australian lottery and betting operator, has finally decided to reject all bids for its media and wagering division and chose to demerge the business instead, creating a second listed entity.
The Australian company will undergo a process that will separate its Lotteries & Keno business from its Wagering & Media arm. The latter was the subject of several acquisition bids. The last of them came from BetMakers, a fellow Australian company, and it was worth 4 billion dollars.
Tabcorp underwent a strategic review of its business while receiving offers for its Media and Wagering division, and at the end of the process the company decided to opt for the demerger choice.
The plan is to make the Lotteries and Keno division become a separate entity listed on the Australian Stock Exchange, while the Wagering and Media division will remain under the existing Tabcorp entity. As for the shareholders, they will keep their existing shares and also receive proportionate stakes in the new Lotteries and Keno company.
Tabcorp revealed that its board of directors had carefully reviewed the proposals from Entain, the United Kingdom iGaming giant, Apollo Management, a global private equity firm, and BetMakers for the sale of its Wagering and Media division. At the end of the review the board decided that the demerger was the “most certain path to maximise the value of both businesses for Tabcorp shareholders.”