Published
Mergers & Acquisitions

Consortium offers A$7.3bn counterbid for Tatts Group

A co

tattsgroup
nsortium including private equity firm KKR, Morgan Stanley Infrastructure and Macquaire Group Ltd has offered up to A$7.3bn to buy Australian lottery operator Tatts Group, threatening a takeover deal with Tabcorp Holdings Ltd.

The proposed deal is worth between A$4.40 and A$5 per Tatts share, with the group planning to either sell or separately list Tatts’ betting and gaming business.

In a statement, Tatts said it has yet to form a view on how the proposal compares with the Tabcorp offer that is currently valued around A$6.03bn. However, it has been reported that two Tatts shareholders believe the new offer is a superior deal and could spark a bidding war with the entry of additional players.

In October, Tabcorp agreed to acquire Brisbane-based Tatts to form a gambling powerhouse in the hopes of fending off the increasing number of competitors from overseas online rivals. Nontheless, this deal is uncertain after the recent offering from the Pacific Consortium.

Charlie Green, director at Hunter Green Institutional Broking, which owns Tatts shares says: “The value of the lotteries business is starting to be recognised, it is not undeniably game-on in terms of an auction.”

Managing director of activist investor Sandon Capital, which also owns Tatts shares, says that whilst the latest offer is a considerable improvement on Tabcorp’s, it’s unlikely to be the last

News of the proposed consortium offer sent shares in Tatts soaring by 8.5%, ending Tuesday at its highest level since 2007.

Premium+ Connections
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium Connections
Consultancy
Executive Profiles
Seminole Hard Rock Support Services
Seminole Hard Rock Support Services
Metropolitan Gaming
Holland Casino
Nederlandse Loterij
Follow Us

Facing Facts: Q1 2024 analysis from across the globe

Gambling Insider tracks the Q1 results of operators across t...

Taking Stock: A guide to sports betting operator and supplier prices

Gambling Insider tracks sports betting operator and supplier...

Tailor-made: The power of personalisation in the modern gaming industry

With insights from GR8 Tech, Greentube and the Oregon Lotter...

Sportradar and the Taiwan Sports Lottery: More offerings, greater efficiency

Danny Fok, VP of Strategic Projects at Sportradar, speaks al...