BetMakers makes US$3.09bn offer for Tabcorp’s Wagering and Media business
BetMakers has submitted an indicative proposal to acquire Tabcorp’s Wagering and Media business for AU$4bn (US$3.09bn).
Under the proposal, Tabcorp would receive AU$1bn in cash, which BetMakers anticipates funding through debt financing, and AU$3bn in BetMakers shares, which would see Tabcorp investors own 65% of the shares in BetMakers.
The formal approach from BetMakers follows cash bids of AU$3.5bn from Entain and private equity group Apollo.
“I am excited by the potential opportunity to reinvigorate the Tabcorp Wagering and Media business,” said BetMakers Strategic Adviser Matt Tripp.
“There is significant potential for the business to grow in partnership with BetMakers and I hope to get the opportunity to support the Australian racing industry which relies on the success and growth of TAB.
“Aside from the value that this offer is anticipated to unlock for shareholders in both companies, this is an incredibly exciting opportunity for the Tabcorp Wagering and Media business to maximise its commercial potential on a global scale.”
BetMakers said the proposal enables the Australian operator to unlock the value of its Wagering and Media business, and has advantages over a cash sale by providing Tabcorp shareholders with flexibility and choice. It added that there are also advantages over a demerger of Tabcorp Wagering and Media by “accelerating the growth strategy through providing access to BetMakers’ technology and an established global network for the monetisation of content globally.”
BetMakers CEO Todd Buckingham commented: “Building on BetMakers’ success to date, the combined entity would be a compelling investment proposition as one of the most broadly deployed global racing networks in the market. We are uniquely placed to pursue commercial opportunities globally, and in particular, in the United States.”
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