Tabcorp Holdings (TAH) has today confirmed the sale of its interest in the China Keno business to China Lot Synergy, its joint venture partner, for $15 million.
CEO of Tabcorp Elmer Funke Kupper said the sale allowed the gaming company to achieve a clean exit from the China Keno business without impact on its bottom line.
"It is the right time for Tabcorp to exit the business."
"This decision is consistent with Tabcorp's focus on improving the performance and growth of its Australian casino, wagering and gaming businesses," he said.
"The technical trial has been successful with terminals operating in 28 provinces across China.
Also on gaming, Tatts Group (TTS) announced that it has acquired Macquarie Group's 50% share of the European Gaming Group for an undisclosed sum.
European Gaming owns 100% of Talarius, which operates 191 gaming centres and approximately 8,000 gaming machines in the UK.
Tatts said it would fund the acquisition from existing corporate debt facilities and plans on spending $56 million on refurbishing Talarius during the next three years.
"Having agreed to acquire 100 per cent of European Gaming, Tatts Group with Talarius have already turned attention to the planning necessary to introduce new gaming machines, reconfigure gaming floors, refurbish venues and produce more efficient and timely gaming machine maintenance practices," Tatts said.
Tatts also said it intending on seizing further opportunities to aquire venues in the UK.
The European Gaming transaction is expected to be complete in January 2008.
At 12:00PM AEST shares in Tabcorp had risen by 8 cents to $14.63 while Tatts was still trading flat at $3.83.
