The long running A$11.3bn merger saga concerning Australia’s two biggest lottery operators, Tabcorp Holdings and Tatts Group looks to be coming to a close after the Supreme Court of Victoria approved the takeover schedule.
In a statement, Tabcorp confirmed that court orders have been lodged with the Australian Securities and Investment Commission and as such the scheme of arrangement is now effective.
Both Tabcorp and Tatts Group have confirmed that the scheme of arrangement, essentially the merger between the two businesses will be implemented on Friday 22 December. Upon commencement of the merger proceedings, Tatts Group will be absorbed into Tabcorp.
Writing to shareholders, Tabcorp chairman Paula Dwyer said: “The combination brings together two highly complementary businesses and a strong pool of talent from within each organisation, ensuring that the combined group is well positioned to invest, innovate and compete in a rapidly evolving operating environment.
“The combination is expected to create significant value for Tabcorp shareholders, and benefits for our customers, racing industry, agencies, licenced venues, newsagents, and Federal, State and Territory Governments.”
This latest development follows Tabcorp completing its divestment of its interests in Odyssey Gaming Services, a key factor in the Australian Competition Tribunal’s decision to green-light the merger between the two companies.
Following the approval of the scheme of arrangement, Tatts Group have announced payment of a 16 cent special dividend to its shareholders and have confirmed the suspension in trading of the group's ordinary shares on the Australian stock exchange.
Subject to regulatory approvals, the merger is expected to take around two years to complete.