UK punting giant Entain has lifted its offer for Tabcorp’s bookmaking and media division by half a billion dollars, taking the new price to $3.5 billion.
Tabcorp said in a statement on Tuesday morning that it had not yet formed a view on the merits of the new price from Entain, which owns the rival online bookies Ladbrokes and Neds.
Tabcorp had earlier rejected the $3 billion offer, but some market analysts reckon the new price is close to what Tabcorp wants.
In rejecting the first Entain offer in February as too low Tabcorp launched a strategic review into the future of its wagering business to consider whether it should look to sell the unit or demerge it from its lotteries operation.
Tabcorp said on Tuesday that it would assess the new bid “in the context of the previously announced strategic review”.
“As stated, the objective of the strategic review is to assess and evaluate all structural and ownership options to maximise the value of Tabcorp’s businesses for the benefit of shareholders,” the company said.
Private equity group Apollo and media heir Lachlan Murdoch have also expressed interest in Tabcorp’s TAB wagering division, which remains the largest bookie in the country but continues to lose ground to online rivals such as Sportsbet and Ladbrokes for over a decade.
Investors should watch for the major racing clubs and similar organisations because they have a powerful voice – if they do not like the offer or the bidder, they can withhold approval because they control the rights to the basic data – the race fields and associated information. The same would apply to greyhound and harness racing.
Their view can be best summed up by the phrase ‘what’s in it for us’?
