has announced it intends to undertake a demerger of its Lotteries & Keno business. This decision follows the conclusion of a strategic review of options to maximise value for shareholders, as announced on 29 March 2021. The demerger will create two standalone ASX-listed companies with distinct operating profiles, strategies and growth opportunities.
Lotteries & KenoCo will be a nationwide lottery operator, with licences to operate in all Australian States and Territories except Western Australia. It will be the licensee of Keno products to venues across NSW, Victoria, Queensland, South Australia and the ACT.
Wagering & GamingCo will comprise TAB, an omni-channel wagering operator; Sky, a multi-venue, multi-channel racing and sports broadcaster; international businesses in the US and Europe; and MAX, Australia’s largest gaming services provider.
Following the demerger, both businesses will benefit from focused management, optimised capital structures, increased scale and diversification already achieved through the combination with Tatts Group. A demerger will provide shareholders with the ability to value each business on a standalone basis, with a potential market re-rating of each business and potential upside from any future domestic regulatory reform and international expansion opportunities in wagering and media.
Tabcorp chief executive David Attenborough will leave the company when the demerger is complete. Tabcorp are targeting completion of the demerger by the end of June 2022, subject to all relevant approvals.
Shares in Tabcorp (ASX:TAH)
are trading 4.9 per cent lower at $4.94.