The $11 billion listed gambling giant said Apollo’s second offer was conditional on due diligence,finance,approval from regulators and Tabcorp’s racing industry partners.
“The Tabcorp board has not yet formed a view on the merits of the revised proposal and will assess it
in the context of the previously announced strategic review,” it said in a statement released just before 5pm.
Entain,which owns online bookmakers Ladbrokes and Neds in Australia,made a $3 billion offer for Tabcorp’s TAB wagering arm in February which,after being knocked back,it increased to $3.5 billion last week.
Interest from multiple parties prompted Tabcorp’s Steven Gregg-led board to launch a strategic review looking at whether it should try to sell its unloved wagering and media business,or demerge the unit from its lotteries arm and list it as a separate company on the ASX.
Investors have become increasingly frustrated with Tabcorp over the performance of the wagering unit,as it lost ground to online rivals including Sportsbet and Ladbrokes. Meanwhile,strong returns from it lotteries business has led to some investors pushing for a break-up of the $11 billion merger between Tabcorp and Tatts in 2017.
Entain has not expressed any interest in Tabcorp’s pokies servicing business so far. But the relatively small unit may sit more logically with wagering in a demerger situation,meaning Apollo’s secondary $4 billion offer for the wagering and the pokies businesses may gain more traction with Tabcorp’s board.
Media mogul Lachlan Murdoch has also expressed interest in Tabcorp’s wagering and media assets as his Fox Corporation looks to grow on the success of its Fox Bet operation in the US,while Australia’s online wagering pioneer Matthew Tripp has also positioned himself to be involved in a deal.