Entain has expressed its disappointment with Tabcorp’s decision to separate in two, saying its offer would have delivered better outcomes for shareholders.
Australia.- Entain has expressed its disappointment after Tabcorp announced it would spin-off its businesses into two separate companies.
UK-based Entain said in a statement: “Entain is disappointed by the decision of the Tabcorp Board, as we believe our all-cash offer would have delivered superior outcomes for shareholders, customers, employees and the wider industry.
“Price discipline is essential in building on the significant shareholder value that our global growth strategy will deliver for all our stakeholders and we have a healthy pipeline of opportunities.”
In April, Entain improved its original proposal to acquire Tabcorp’s wagering and media business to AU$3.5bn (US$2.7bn).
At the time, Entain said it believed that the revised proposal was compelling both in terms of the value it represented for Tabcorp shareholders in cash, and certainty of deliverability.
Tabcorp has announced it will create two companies: Lotteries & KenoCo, which will cover lotteries and Keno, and Wagering & GamingCo, which will cover wagering, media and gaming Services.
Steven Gregg, Tabcorp chairman, said: “The two businesses are expected to be leaders in their respective markets, creating great experiences for millions of customers.
“They will both build on their heritage of sharing the benefits of their commercial success with governments, the racing industry, licensed venues, newsagents and other retail and business partners.”
Tabcorp said the demerger will provide shareholders with the ability to value each business on a standalone basis, with a potential market re-rating of each.