The Chairman of Tabcorp (ASX:TAH), John Story, says the company’s proposed spin-off will increase revenue during the refurbishment of its three casinos in Queensland, just as it did during the refurbishment of Star City Casino.
Echo Entertainment will be chaired by Mr Story, and has been regarded as a potential takeover target, with the Australian suggesting James Packer’s Crown may be interested.
Shareholders will vote on a $5.2 billion demerger between Tabcorp and Echo on Wednesday.
In the first six months of the 2011 financial year Tabcorp Holdings posted a net profit of $265.5 million.
