Tabcorp (ASX:TAH) receives $3.5 billion offer from British rival

Company News

by Michael Luu

International sports betting and gambling company Entain has upgraded its offer for Australia’s largest wagering and lottery firm Tabcorp (ASX:TAH)’s bookmaking and media assets to $3.5 billion.

The 17-per-cent increase from the original bid by the heavyweight owner of popular betting platforms bwin, Sportingbet and Ladbrokes represents $500 million.

British bookmaker Entain’s Ladbrokes online platform has been contesting fiercely with Tabcorp for market share in Australia.

While the London-listed giant’s original bid of $3 billion failed to sway the ASX-listed firm, Tabcorp subsequently conducted a strategic overhaul and assessed the prospect of splintering the company into separate gambling and lotteries entities.

Tabcorp (ASX:TAH) has justified the review process as a means to “maximise the value of Tabcorp’s businesses for the benefit of shareholders”

Entain is also facing competition from NY-listed equity manager Apollo (NYSE:APO) for Tabcorp’s bookmaking assets.

Shares in Tabcorp (ASX:TAH) are trading almost 4 per cent higher at $4.99