Last month, Tabcorp announced that it received several unsolicited approaches and proposals for the acquisition of its wagering and media division, including an offer from Entain. However, no firm bids have been made at this time, and the company cannot guarantee that a transaction will occur.
Tabcorp has now confirmed that the valuations on the proposals for its Wagering and Media arm, which have reached approximately AUS$3.0bn, do not adequately reflect the value of the segment. As a result, the company will initiate a strategic review to assess all potential structural and ownership options with the aim of maximizing shareholder value.
One of the options being considered is the potential sale of the Wagering and Media business to a third party or through a demerger. The demerger could involve separating either the Wagering and Media arm or the Lotteries and Keno business. Tabcorp will also resume the strategic review of its gaming services business as part of this process.
Tabcorp Chairman, Steven Gregg, stated that the strategic and ownership options being assessed include a demerger or sale of one or more of the company’s businesses. The primary objective is to fully maximize the value of Tabcorp’s gambling entertainment businesses for the benefit of shareholders.
During the strategic review, the search for a replacement for managing director and chief executive, David Attenborough, will be put on hold. Attenborough had announced his intention to step down from both roles in July last year, but will remain with the company during the strategic review period.
