The Supreme Court of New South Wales has ordered a meeting of shareholders to vote on the proposed demerger of Tabcorp’s lotteries and keno business.
Australia.- Tabcorp has announced that the Supreme Court of New South Wales has ruled that shareholders should vote on its plan to demerge its lotteries and keno businesses to create two separate companies.
A general meeting of shareholders will be held on Thursday May 12, with a another planned meeting to be held on the same day or shortly after. Tabcorp shareholders can attend the meeting in person or through an online meeting platform.
Tabcorp announced the spin-off back in July 2021. The company said the move would give shareholders the opportunity to value each business on a standalone basis, with a potential market re-rating of each. According to Tabcorp, the spin-off is expected to incur one-time separation costs of between AU$225m to AU$275m and ongoing incremental costs of nearly AU$40m to AU$45m.
Proposed board lineup for Tabcorp’s spin-off
Last October, Steven Gregg, Tabcorp’s chairman, announced the possible board lineups for the two separate companies. Gregg would chair the lotteries and keno business and would be joined on the board by directors Harry Boon and Anne Brennan.
Sue van der Merwe, the current managing director of the division, would be CEO and Adam Newman chief financial officer. Patrick McGlinchey would serve as chief legal and risk officer and co-company secretary.
Meanwhile, Wagering & GamingCo, which would cover wagering, media and gaming services, would be led by Adam Rytenskild as CEO and Bruce Akhurst as chairman. They would be joined by David Gallop, Janette Kendall and Justin Milne as non-executive directors. Dan Renshaw would be Wagering & GamingCo’s chief financial officer upon demerger.
Tabcorp awarded new 20-year keno licence in Victoria
Tabcorp has been awarded a 20-year non-exclusive retail and digital Keno licence in the state of Victoria. The new licence will take effect from April 15 when the current exclusive 10-year retail-only licence expires. It 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.
Tabcorp, supported by its retail partners, will continue to offer keno games to players in Victoria, supported by prize mergers with other key keno markets.