Tabcorp Report $230m Raised Through Retail Bookbuild

Tabcorp Holdings has reported that the retail portion of its entitlement bid of AU$600 million (EU$370 million) has been completed, raising approximately AU$230 million (EU$142 million).

Completing the retail process of its entitlement offer approved after Tabcorp released its 2019 results, the ASX gambling group sold 8.5 million retail entitlements through the $2.7 million investment created for shareholders in the business.

The deal follows the $371 million entitlement bid raised last August from institutional investors, the retail entitlements constitute about 12 percent of entitlements.

The proceeds from the entitlement offer will be used to pay down existing drawn bank loan facilities which will improve the balance sheet of Tabcorp and provide greater financial stability and additional credit metric headroom for the purposes of covenant and ranking.

In publishing its 2019/2020 accounts, Tabcorp disclosed to investors that it expected a cumulative write-down loss of between AUS $1-1.1 billion, due to severe pandemic damage across its TAB wagering units.

The outgoing Chairman of Tabcorp, Paula Dwyer, said: “The completion of the retail shortfall bookbuild concludes the renounceable entitlement offer announced with our FY20 results. We are pleased that all of our retail shareholders who did not participate have realised value for their rights.”

Approximately 35,000 retail shareholders chose to take over their retail entitlements in whole or in part, which amounted to qualifying retail shareholders subscribing to approximately 31.4 million new Tabcorp stock, increasing about $102 million.

An additional 39.7 million retail entitlements, priced at $3.31 per retail entitlement, were made available through a retail default bookbuild. Qualified owners and qualified retail investors who have not accepted their entitlements will earn $0.06 per entitlement sold through the bookbuild.