Entain has released a statement expressing its disappointment with Tabcorp Holdings’ decision to demerge its Wagering & Gaming and Lotteries & Keno divisions.
Tabcorp announced plans to establish the aforementioned business sectors as independent ASX registered companies – Wagering & GamingCo and Lotteries & KenoCo, respectively – with jurisdiction across most of Australia, as well as certain international operations for the sports betting unit.
Listed on the FTSE 100 Entain had previously bid for Tabcorp’s TAB sports wagering sector, but the Australian corporation had rejected its original bid of AUS £3 billion (€2 billion) for “grossly undervaluing” the unit on sale.
Following this, Entain raised their offer to AUS £3 billion (€2.2 billion), but received no confirmation or rejection from the potential sale.
The company’s statement read: “Entain is disappointed by the decision of the Tabcorp Board, as we believe our all-cash offer would have delivered superior outcomes for shareholders, customers, employees and the wider industry.
“Price discipline is essential in building on the significant shareholder value that our global growth strategy will deliver for all our stakeholders and we have a healthy pipeline of opportunities.
“Entain’s Australian business, comprising the Ladbrokes, Neds, Betstar and Bookmaker brands, continues to build on a record year in 2020. We are confident that it will go from strength to strength as it delivers innovative and highly engaging products for its customers as well as supporting the health of the wider Australian racing industry.”
Entain is also up against Tabcorp’s fellow ASX-listed company BetMakers in the TAB bidding war, which has offered AUS $4 billion (€2.5 billion) to buy the TAB division, a move that the company believes will help both Australian horse racing and the country’s betting users.
Despite rejecting all offers for the purchase of its TAB unit, Tabcorp said it would continue to speak with potential buyers as it looks for profitable options for its investors.