Gaming company Tabcorp Holdings Ltd
(ASX:TAH) has completed the institutional component of its entitlement offer, raising $238 million.
Tabcorp says the institutional bookbuild was significantly oversubscribed with the bookbuild clearing price coming to $7.30 a share, $1.05 over the $6.25 offer price.
The offer attracting very strong demand from Tabcorp institutional shareholders, the company says, with eligible shareholders taking up more than 95 per cent of the shares available as part of the offer.
CEO Elmer Funke Kupper says the strong response received for the offer highlights a compelling investment case for a demerger of the company’s casino business from its wagering, gaming and keno businesses.
Tabcorp says it will now proceed with the retail component of the offer to raise around $190 million.
Tabcorp earned $469.5 million for the year to June 30, 2010.
