The Australian companies are expected to finalise the multi-billion merger in November.
Australia.- Tabcorp and Tatts have been trying to merge for quite some time now, with several attempts to block the measure from Australian companies and the Australian Competition and Consumer Commission (ACCC), which decided to file the first appeal against the Australian Competition Tribunal’s decision to allow Tabcorp and Tatts to merge, because they believe three reviewable errors have been made. Nevertheless, the fusion is expected to happen in November of this year.
Shareholders of Tatts have scheduled a meeting to vote on the deal next month. Paula Dwyer, Chair of Tabcorp, said: “With substantially all pre-implementation regulatory approvals now in place, we look forward to continuing to work with Tatts to successfully complete the Transaction and are expecting implementation to take place in November 2017.”
Moreover, she added that together they would be well placed to pursue more investments and innovation across all businesses, including best-in-class digital products and experiences. One of the largest shareholders of Tatts, AustralianSuper, said that it will vote in favor of the merger. It is expected that they will end up with 58 percent of the combined group, whilst Tabcorp’s would have a 42 percent.
Last month, Tabcorp reported during a regulatory filing a US$16.6 million net loss when compared to the net profit of US$135 million registered during the last fiscal year. Whilst the net loss number was lower than 2015-2016 fiscal year, revenue increased 2 percent to US$1.75 billion this period. Tabcorp said that the losses were due to an investigation in Cambodia, and the proposed merger with Tatts, among other issues.