Mr Attenborough said on Wednesday that bidders were showing interest now that integration of the TAB and UBET brands was almost complete following Tabcorp’s merger with lotteries operator Tatts Group three years ago and recent investments in the business to better compete against online rivals like Sportsbet would soon reap benefits.
“I’m not surprised that we are seeing approaches,” he said. “There’s a really strong opportunity in that business to grow.”
He said the board was carefully considering offers while stressing they were highly conditional and subject to financing and approval from regulators and the racing industry.
Tabcorp on Wednesday revealed that earnings from its wagering and media business fell 3 per cent in the six months to December 3. There was a massive shift away from its retail book making operations in the half (turnover down 28 per cent) and towards online betting (up 43 per cent) due to COVID-19 related closures.
“If the price is good then I think a lot of shareholders would probably back the[sale],including us.”
Martin Currie fund manager Patrick Potts
Patrick Potts,a fund manager at Martin Currie which owns around 2 per cent of Tabcorp,said he and other shareholders would be happy to see the wagering division offloaded for the right price,leaving investors with Tabcorp’s profitable and stable lotteries business.
Mr Potts said that while the division was showing “green shoots”,earnings remained in decline and it was unclear if it would continue to lose market share to its online competitors,having seen it slip 4 percentage points to 26 per cent in the second quarter.