Entain redoubles its pursuit in acquiring Tabcorp by lifting AU$3bn offer to AU$3.5bn

After the revised bid offered this morning, Tabcorp stock edged 4.17% higher to $5

This morning Entain upped its offer for Australia’s renowned book keeper Tabcorp. The initial offer was rejected in February at AU$3bn as it didn’t reach Tabcop’s expectations. Entain didn’t give up and from $3bn they lifted the offer to $3.5bn.

Entain said in a statement, that the company “believes that the revised proposal is compelling both in terms of the value it represents for Tabcorp shareholders in cash, and certainty of deliverability.

“The proposed transaction would be in-line with Entain’s current M&A strategy, and presents an opportunity to acquire an attractive business, which when combined with Entain’s existing Australian business, would create a leading, integrated multi-channel and multi-brand wagering company.”

Tabcorp has yet to certify if Entain’s offer will be confirmed after they carry out a strategic review and analysis have yet to verify if the revised bid is enough to allow due diligence.

So far Tabcorp has “not yet formed a view on the merits of the revised proposal and will assess it in the context of the previously announced strategic review.

“As stated, the objective of the strategic review is to assess and evaluate all structural and ownership options to maximise the value of Tabcorp’s businesses for the benefit of shareholders.”

“These options may include a potential sale of the Wagering & Media business to a third party or a potential demerger of either the Wagering & Media business or the Lotteries & Keno business.”

Anton Tagliaferro, investment director at Investors Mutual who owns around 3% of Tabcorp stated “I think they’ll wait a little bit and see if there are any other interested parties.”

Back in February, SiGMA News confirmed that Tabcorp received a number of ‘unsolicited approaches’ regarding its betting sector.

Ladbrokes has carried out a string of acquisitions in recent months by acquireing Swedish Enlabs and Portuguese firm Bet.pt.

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