Tabcorp has announced it will spin-off its businesses into two separate companies, one covering its lottery operations and one comprising its wagering, media and gaming services.<\/p>\n\n\n\n\n\n\n\n
Australia.- Lottery services provider Tabcorp has announced its intention to\u00a0demerge its lotteries and Keno businesses<\/strong>\u00a0to create two separate companies.<\/p>\n\n\n\n Tabcorp said the decision was taken following a strategic review\u00a0<\/strong>of all relevant structural and ownership options to maximise value for shareholders. It will create two companies: Lotteries & KenoCo<\/strong>, which will cover lotteries and Keno, and\u00a0Wagering & GamingCo<\/strong>, which will cover wagering, media and gaming Services.<\/p>\n\n\n\n Steven Gregg<\/strong>,<\/strong> Tabcorp chairman, said: \u201cThe two businesses are expected to be leaders in their respective markets, creating great experiences for millions of customers.\u00a0<\/p>\n\n\n\n “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.”<\/p>\n\n\n\n Tabcorp said the demerger will provide\u00a0shareholders with the ability to value each business on a standalone basis<\/strong>, with a potential market re-rating of each.<\/p>\n\n\n\n As for the multiple offers Tabcorp has received for its\u00a0wagering and media business<\/strong>, the company said it had engaged with all interested parties and concluded that the demerger was the optimal, and most certain, path to maximise the value of both businesses for Tabcorp shareholders.<\/p>\n\n\n\n According to the company,\u00a0the demerger process is expected to incur between AU$225m to AU$275m<\/strong>\u00a0in one-off separation costs and nearly around AU$40m to AU$45m in ongoing incremental costs.<\/p>\n\n\n\n The company noted that\u00a0it will continue working with BetMakers<\/strong>\u00a0to discuss potential commercial opportunities in international markets.<\/p>\n\n\n\n In May,\u00a0BetMakers<\/a> made an\u00a0AU$4bn (US$3.09bn) offer\u00a0<\/strong>through which Tabcorp would receive\u00a0AU$1bn in cash and AU$3bn in BetMakers shares<\/strong>.<\/p>\n\n\n\n Entain<\/a>, meanwhile, upped its original offer for Tabcorp from AU$3bn to AU$3.5bn.\u00a0Apollo Global Management<\/a>\u00a0has put\u00a0two offers on the table<\/strong>, one equalling the offer made by Entain and another offering US$3.10bn including Tabcorp\u2019s gaming services business.<\/p>\n\n\n\nTabcorp posts revenue of US$2.2bn for H1<\/strong><\/h2>\n\n\n\n