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Apollo Global, a private equity firm based in the United States, has made an initial bid of AUS $4 billion (€2.5 billion) for Tabcorp Holdings’ wagering division.
With Apollo’s offer, Tabcorp’s wagering and media division, as well as its associated ‘pokies’ machine subsidiary unit, will be under its management.
Apollo has made a secondary bid of AUS 3.5 billion to buy Tabcorp’s TAB unit, which is identical to the revised offer made by Entain Plc last month.
Tabcorp said it would consider both Apollo and Entain’s proposals as part of a strategic analysis of the company’s options, which includes weighing the sale of its wagering unit and a spin-off of its Tatts lottery and keno division.
Despite the interest in a TAB sale, Tabcorp Chairman Steven Gregg has confirmed that a sale is not assured because the unit delivered better-than-expected financial results during challenging 2020 trading.
Tabcorp says its strategic review will look at all of the company’s options, maintaining its commitment to deliver long-term shareholder value made after the AUS $11 billion merger with Tatts Group in 2018.
Apollo, which has been involved in the gambling M&A market, announced this week that it is interested in buying William Hill’s UK and European divisions, which have been placed up for sale by new owner Caesars Entertainment.
Multibillion-dollar mergers and acquisitions
The US fund is attempting to expand its presence in a disrupted global gambling environment by completing a series of multibillion-dollar mergers and acquisitions.
In Europe, Apollo expanded its gambling portfolio by acquiring Lottomatica Scommesse’s Italian gambling properties and combining them with Gamenet Group, as well as guaranteeing SAZKA Group‘s €500 million M&A fund.
The firm’s recent purchase of Great Canadian Gaming Corporation for over CAD$3.3 billion, as well as its negotiated takeover of Las Vegas Sands casino assets for $6 billion, were both made in March.