Australian betting giant Tabcorp has opted against accepting recent proposals by global gaming investors to acquire its Wagering & Media arm due to the offers undervaluing the asset, in the opinion of the Tabcorp Board. However, the company will hold a strategic review of all structural and ownership options which could see the Wagering & Media business sold at a higher price or result in a demerger.
The update, provided via a Monday morning ASX announcement, comes after UK online gaming firm Entain PLC recently confirmed it had made an offer for Tabcorp’s Wagering and Media arm. It has been rumored that US media conglomerate Fox Corp – overseen by Australia’s Lachlan Murdoch – is also eying a bid.
Tabcorp said Monday that it has has received several unsolicited approaches and proposals to acquire its Wagering & Media business, all valued at around AU$3 billion (US$2.3 billion).
“The Tabcorp Board has carefully considered the proposals and formed the view that the proposals do not adequately value Tabcorp’s Wagering & Media business,” the company said.
“Tabcorp has consequently decided to undertake a strategic review to assess and evaluate all structural and ownership options to maximize the value of Tabcorp’s businesses for the benefit of shareholders.
“These options could include a potential sale of the Wagering & Media business to a third party or a potential demerger, which could be implemented via a separation of the Wagering & Media business or the Lotteries & Keno business. As part of this process, Tabcorp is also resuming its strategic review of the Gaming Services business.”
With the strategic review being undertaken and overseen by the company’s Board of Directors, Tabcorp said it has placed the search for a new Managing Director & CEO on hold with David Attenborough to now continue while the review takes place.