BetMakers Makes Offer for Tabcorp’s Wagering and Media Business
Tabcorp Holdings Limited (Tabcorp) has announced it has received an unsolicited, non-binding and indicative proposal from BetMakers Technology Group Ltd (ASX:BET) (BetMakers) in relation to a possible acquisition by BetMakers of Tabcorp’s Wagering and Media business, which includes Sky Racing.
According to a statement authorised by Tabcorp Chairman, Steven Gregg, BetMakers has indicated that the value of its proposal is AUD$4.0 billion which is comprised of cash consideration of A$1.0 billion and new shares in BetMakers with a value of A$3.0 billion. The number of shares which BetMakers proposes to issue would be fixed at the time that any potential transaction is agreed between Tabcorp and BetMakers, and would be priced at a 15 percent premium to the BetMakers share price at that time. BetMakers proposes that the new shares in BetMakers would then be distributed to Tabcorp shareholders on a pro rata basis.
The proposal would be subject to numerous conditions including due diligence, arranging financing, receipt of all relevant regulatory approvals and obtaining various third party approvals and consents.
According to the statement, “The Tabcorp Board has not yet formed a view on the merits of the proposal and will assess it in the context of the previously announced strategic review. The objective of the strategic review is to assess and evaluate all structural and ownership options to maximise the value of Tabcorp’s businesses for the benefit of shareholders. These options may include a potential sale of the Wagering and Media business to a third party or a potential demerger of either the Wagering and Media business or the Lotteries and Keno business.”
The offer comes as BetMakers completes acquisition of the Racing, Tote and Digital business of Sportech PLC in the United States, United Kingdom and Europe.
The acquisition of the Tote and Digital Business “enhances BetMakers’ position to capitalise on growth opportunities in international wagering markets and is anticipated to materially expand the Company’s global customer base, technology and geographic reach”.
These assets provide BetMakers with a platform to target growth in the United States, including with respect to Pari Mutuel and Fixed Odds wagering.
The business assets acquired by BetMakers comprise the following:
- Americas Tote Business: providing betting solutions, hardware, and operational services to over 200 racetrack, casino, and betting venues to more than 50 customers across the United States, Canada and Latin America.
- Americas Digital Business: providing white-label digital betting solutions to more than 25 customers in North America.
- UK and European Tote Business: providing betting technology, parimutuel and comingling services to more than 35 customers across the UK, Ireland, Europe, and Asia.
- Quantum Tote Technology: a world-leading tote betting engine currently used internationally and including for events such as the Breeders Cup and Royal Ascot race meetings.
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