NSW Supreme Court gives final OK to Tabcorp spin-off plan

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

The New South Wales Supreme Court has approved the split. The Lottery Corporation shares are expected to begin trading on the ASX.

Australia.- The NSW Supreme Court approved Tabcorp’s spinoff proposal a week after shareholders voted almost unanimously in favour of the division of the company into two businesses. Tabcorp will file a copy of the court order with the Australian Securities and Investments Commission (ASIC) today (May 23).

Shares in the spin-off company, The Lottery Corporation, are expected to begin trading on the Australian Stock Exchange (ASX) tomorrow (May 24) on a deferred settlement basis. Tabcorp’s shares will also begin trading based on an ex-demerger entitlement.

Tabcorp said the spin-off is expected to take place on June 1, with The Lottery Corporation shares trading normally on the ASX the following day. 

Tabcorp chairman Steven Gregg had previously 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 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 lottery business.

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