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 joined FNN in January 2017 after having worked in financial advising for seven years and in TV journalism for seven years, specialising in finance, equities and analysis. She has interviewed former Prime Ministers of Australia, Tony Abbott, Julia Gillard and Kevin Rudd and ex Treasurer Jo Hockey. Jessica has worked as a journalist with Sky News Business, ABC 1, ABC's The Business, ABC24 and has also been a regional Channel 7 and 9 TV reporter with Prime7 and Win News.