Entain hikes offer for Aussie bookie Tabcorp to £1.9bn
Entain this morning hiked its offer for Australia’s biggest bookies Tabcorp to AU$3.5bn (£1.9bn), the FTSE 100 firm has confirmed.
An initial approach worth AU$3bn was batted back by the company in February, but this morning Entain redoubled its pursuit.
In a statement, it said: “Entain believes that the revised proposal is compelling both in terms of the value it represents for Tabcorp shareholders in cash, and certainty of deliverability.
“The proposed transaction would be in-line with Entain’s current M&A strategy, and presents an opportunity to acquire an attractive business, which when combined with Entain’s existing Australian business, would create a leading, integrated multi-channel and multi-brand wagering company.”
If successful, the bid would be the latest in a string of a acquisitions the Ladbrokes owner has carried out in recent months.
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It recently picked up Swedish bookmaker Enlabs and Portuguese firm Bet.pt.
In response to the offer, Tabcorp issued a statement to the Australian Securities Exchange, saying it had “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.
“As stated, the objective of the strategic review is to assess and evaluate all structural and ownership options to maximise the value of Tabcorp’s businesses for the benefit of shareholders.”
“These options may include a potential sale of the Wagering & Media business to a third party or a potential demerger of either the Wagering & Media business or the Lotteries & Keno business.“
Entain shares were up 0.8 per cent as markets opened this morning.