Tabcorp rejected that initial bid as too low and launched a strategic review of the wagering business to consider whether it should look to sell the unit,or split it off from itsbooming lotteries business as two separate listed companies.
The $11 billion group said it had not formed a view on the merits of Entain’s new offer and would assess it “in the context of the previously announced strategic review”.
Investors have grown frustrated with Tabcorp over the performance of the wagering arm,which has been losing ground to online rivals such as Sportsbet and Ladbrokes for over a decade,since its $11 billion merger with Tatts in 2017.
That disquiet contributed to chairman Paula Dwyer’s resignation last year,who has been replaced by long-standing director Steven Gregg,and chief executive David Attenborough announcing he would step down at some point this year.
Loading
Private equity group Apollo and media heir Lachlan Murdoch have also expressed an interest in Tabcorp’s TAB wagering division,while Australia’s online wagering pioneer Matthew Tripp has also positioned himself to be involved in a deal,including in a demerger scenario and possibly by teaming up with Mr Murdoch’s Fox Corporation.
Anton Tagliaferro,investment director at Investors Mutual which owns about 3 per cent of Tabcorp,said the revised bid showed there was interest in the wagering division but did not expect Tabcorp would rush to accept the offer.