Entain dissatisfied with Tabcorp's proposals for a merger
Tabcorp earlier today said it will pursue a demerger plan with BetMakers, which will result in two distinct ASX-listed businesses: Lotteries and KenoCo and Wagering and GamingCo, and will see any existing bids for its wagering business rejected.
Entain was one of a select number of organisations that had expressed interest in Apollo Global Management and Tabcorp's Wagering and Media division. Both had submitted proposals totaling AU$3.5 billion (US$2.7 billion), with the Australian operator rejecting Entain's original offer of AU$3 billion.
BetMakers, an Australian technology company, had also made an offer to purchase the faltering company, but today's news has ended any future talks. Instead, the two groups will collaborate to talk about global business potential.
According to a statement from Entain, "Entain is disappointed by the Tabcorp board's decision, as we believe our all-cash offer would have delivered superior outcomes for shareholders, customers, employees, and the wider industry."
We have a strong pipeline of prospects, and price discipline is crucial to maximising the enormous shareholder value that our global expansion plan will generate for all of our stakeholders.
Entain also stated that its Australian business, which consists of the Ladbrokes, Neds, Betstar, and Bookmaker brands, continues to build on a record year in 2020. The company added that it is confident of going "from strength to strength as it delivers innovative and highly engaging products for its customers as well as supporting the health of the wider Australian racing industry."