A consortium of three companies proposed an offer to acquire the Australian Tatts Group.
Australia.- Pacific Consortium, a bidding group that features Morgan Stanley, KKR & Co and Acquire Group, offered US$5.5 billion to purchase Australian gambling operator Tatts Group. Tabcorp has filled a document to the Australian Stock Exchange in order to enter into a cash-settled equity swap with Tatts.
Last month, Tabcorp and Tatts Group informed that they were waiting for the final approvals of the merge. The agreement granted Tabcorp 147 million shares in Tatts Group, which represents 10 percent of the distinguished gaming company. Whilst the strategic move from Tabcorp was set at an average reference price of AUS$4.34 per Tatts share, the new proposed deal from Pacific Consortium is worth between AUS$4.40 and AUS$5 per Tatts share.
The merger, approved by the companies’ shareholders, was set to be finished by mid-2017. However, the new bid puts the Tabcorp and Tatts merger at risk. According to Bloomberg, Morgans Financial analyst James Lawrence said: “It clearly highlights the attractiveness of the lotteries business.” Tatts executives said that they’re considering the offer, but they still have to compare it to Tabcorp’s.