Tabcorp to unwind swap and receive $554 million

Company News

by Jessica Amir

Betting giant Tabcorp (ASX:TAH) has announced it has unwound a cash-settled equity swap, and will receive about $554 million in gross proceeds.

The unwinding was for 117 million Tabcorp shares, equating to about 5.8 per cent of its shares on issue, at a price of $4.72.

And as a result of the combination of Tatts, Tabcorp already received $62 million, while it will now receive a further $554 million with the proceedings being put towards its borrowings.

The company says it unwound the vehicle as it served its purpose, to pay down financing of the equity swap.

Shares in Tabcorp (ASX:TAH) are trading 1.89 per cent lower at $4.67.
 

Jessica Amir

Finance News Network
Jessica is a senior finance journalist and presents the Market Outlook, Market at Midday and Market Wrap. She also presents ASX company news and interviews CEOs. She joined FNN in January 2017 with six years of broadcast journalism experience. She worked as a journalist and producer with Sky News Business, ABC 1, ABC's The Business and ABC24. She also worked in regional Australia for Prime 7 and WIN News as a TV reporter. In her prior life she worked as a financial planner.