Tabcorp Holdings Limited (Tabcorp) announces that it has received an unsolicited, non-binding and indicative proposal from BetMakers Technology Group Ltd.

in Finance

28 May 2021

ASX Market Announcements

Australian Securities Exchange 20 Bridge Street Sydney NSW 2000

Acquisition proposal received for the Wagering and Media business

Tabcorp Holdings Limited (Tabcorp) announces that it has received an unsolicited, non-binding and indicative proposal from BetMakers Technology Group Ltd (ASX:BET) (BetMakers) in relation to a possible acquisition by BetMakers of Tabcorp’s Wagering and Media business.

BetMakers has indicated that the value of its proposal is A$4.0 billion which is comprised of cash consideration of A$1.0 billion and new shares in BetMakers with a value of A$3.0 billion. The number of shares which BetMakers proposes to issue would be fixed at the time that any potential transaction is agreed between Tabcorp and BetMakers, and would be priced at a 15% premium to the BetMakers share price at that time.

BetMakers proposes that the new shares in BetMakers would then be distributed to Tabcorp shareholders on a pro rata basis.

The proposal is subject to numerous conditions including due diligence, arranging financing, receipt of all relevant regulatory approvals and obtaining various third party approvals and consents.

The Tabcorp Board has not yet formed a view on the merits of the 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 and Media business to a third party or a potential demerger of either the Wagering and Media business or the Lotteries and Keno business.

This announcement was authorised for release by the Tabcorp Chairman, Steven Gregg.

For more information: Media: Nicholas Tzaferis, GM Corporate Communications, +61 3 9868 2529 Investors/Analysts: Chris Richardson, GM Investor Relations, +61 3 9868 2800

https://company-announcements.afr.com/asx/tah/a18d9159-bf3d-11eb-b974-7edceaebc562.pdf

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SYDNEY--BetMakers Technology Group Ltd. is seeking to buy the wagering and media unit of Australian betting firm Tabcorp Holdings Ltd., becoming the latest suitor looking to acquire parts of the company.

BetMakers said its bid values Tabcorp's wagering and media unit at 4 billion Australian dollars (US$3.1 billion). BetMakers said it would offer A$1 billion in cash and A$3 billion in BetMakers shares, priced at a 15% premium.

BetMakers said the transaction would result in Tabcorp shareholders owning approximately 65% of the combined entity of BetMakers and Tabcorp's wagering and media unit.

BetMakers said the deal would combine the technology capabilities and global platform of BetMakers with the scale and content assets of Tabcorp. It said the deal would also result in the retention of an Australian ownership structure.

"The combined entity would be a compelling investment proposition as one of the most broadly deployed global racing networks in the market," said BetMakers Chief Executive Todd Buckingham. "We are uniquely placed to pursue commercial opportunities globally, and in particular, in the United States."

Tabcorp has also received acquisition proposals from Entain PLC and Apollo Global Management. Tabcorp previously has said that it's undertaking a strategic review of its business, and the options being considered could involve a sale.

Tabcorp said it has not yet formed a view on the merits of the BetMakers proposal but will assess it in the context of the strategic review.

https://www.marketwatch.com/story/tabcorp-gets-a-4-billion-bid-for-wagering-media-unit-from-betmakers-update-271622156048?mod=mergers-and-acquisitions