98.78% of shareholders approve Tabcorp spin-off plan

Tabcorp will spin-off its businesses into two separate companies.
Tabcorp will spin-off its businesses into two separate companies.

Tabcorp shareholders have overwhelmingly approved the demerger of its businesses into two separate companies.

Australia.- Tabcorp shareholders have voted almost unanimously in favour of the division of the company into two businesses. The Lottery Corporation will cover lottery and New Tabcorp will comprise the wagering, media and gaming services.

According to Tabcorp, 98.78 per cent of the total votes cast were in favour of the demerger, with just 0.17 per cent voting against the proposal and 0.89 per cent of votes classed as open votes.

Tabcorp chairman Steven Gregg said: “We are pleased to have received shareholder approval for the demerger of The Lottery Corporation from Tabcorp. This is an important milestone in repositioning the Group’s portfolio and setting up Tabcorp and The Lottery Corporation for future success.” 

Tabcorp will now seek the NSW Supreme Court’s order to approve the split, with a hearing scheduled for May 20.

Tabcorp first announced plans to spin off its lottery and keno divisions in July 2021 following a strategic review of its operations. The review examined Tabcorp’s structure and ownership options to create more value for shareholders, including a possible sale of its gaming and media businesses. However, the group finally decided to spin off the lotteries business.

The first of these companies will be renamed The Lottery Corporation and will include most of the former Tatts business, but not gaming services. The second company, called New Tabcorp, will include gaming and media in addition to gaming services.

The vote went ahead after the Supreme Court of New South Wales approved a shareholders’ meeting to vote on Tabcorp’s plan to demerge its lotteries and keno businesses

Earlier this year, Tabcorp was awarded a 20-year non-exclusive retail and digital Keno licence in the state of Victoria.  The new licence took effect from April 15 and will run to 2042.

The new keno licensing regime follows the Victorian Government’s licensing review and subsequent measures to encourage applications. It sees a return to a pre-2012 structure with two licensed keno operators in Victoria. It includes targeted inclusion of digital support.

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