BetMakers (ASX:BET) enters race for Tabcorp's wagering & media arm

Company News

by Michael Luu

Digital bookmaking technology firm BetMakers (ASX:BET) has entered the race to acquire rival Tabcorp (ASX:TAH)’s wagering and media platforms.

The $1.3 billion firm has tabled an audacious cash and scrip bid to acquire these assets for $4 billion. The indicative, non-binding proposal comprises of an upfront cash consideration of $1 billion and a $3 billion interest in the BetMakers.

The booming digital bookmaker plans to source the funding for the cash component from its debt facilities. Meanwhile, the proposed deal would entitle Tabcorp shareholders to a 65 per cent stake in the new integrated company.

Tabcorp’s bookmaking and media division had previously attracted interest from British betting giant Entain and US investment powerhouse Apollo Global Management. The proposed offer has placed BetMakers in pole position in the bidding war.

The latest bid for the same infrastructure, valued at $3.5 billion, came as part of a larger $4 billion offer to also take over Tabcorp’s lotteries and Keno entertainment businesses.

Tabcorp’s fierce competitor Entain also submitted an improved $3.5 billion bid for the bookmaking and media assets. 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”

Shares in Tabcorp (ASX:TAH) last traded at $5.06
Shares in BetMakerss (ASX:BET) last traded at 2.5 cents

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