Table of Contents
BetMakers has placed its name in the running to buy Tabcorp Holdings’ TAB wagering and media unit, making a transaction bid valued at AUS $4 billion.
Tabcorp would get AUS $1 billion in cash for TAB under the plan, with BetMakers reserving a further AUS $3 billion share placement – guaranteed at a 15 percent premium to BetMakers’ closing share price prior to finalising the acquisition.
Todd Buckingham, the chief executive officer of BetMakers, stated: “The potential acquisition of Tabcorp’s Wagering and Media business represents an exciting opportunity for BetMakers to deliver transformational growth and realise the value of these new assets in line with this strategy.
“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.”
Skewed in favour of Tabcorp shareholders
BetMakers stressed that its proposal was skewed in favour of Tabcorp shareholders, who would receive a +65 percent stake in the combined ASX operation of BetMakers and TAB wagering businesses.
The company also stated that its merger with TAB amalgamated two very complementary Australian firms that will be transformed into a new competitive sports betting business in the worldwide market.
Matt Tripp, an Australian betting magnet who works as BetMakers’ new strategic M&A advisor, personally backed the bid.
“I am excited by the potential opportunity to reinvigorate Tabcorp’s wagering and media business,” Tripp disclosed. “There is significant potential to grow in partnership with BetMakers supporting Australian racing which relies on the success and growth of the TAB.
“Aside from the value that this offer is anticipated to unlock for shareholders of both companies, this is an incredible opportunity for Tabcorp Wagering unit to maximise its commercial potential on a global scale.”
BetMakers joins Entain and Apollo Global, a US private equity firm, as bidders for the TAB. Entain and Apollo amended their bid approaches last month, offering a direct AUS $3.5 billion cash acquisition of Tabcorp shares.