Australia

BetMakers lobs $3.1 billion offer for Tabcorp's wagering business

Tabcorp is Australia's largest gambling company, employing more than 5,000 people. It is the largest provider of lotteries, Keno, wagering and gaming products and services in that country.
2021-05-28
Reading time 1:01 min
The Matthew Tripp-backed wagering technology group BetMakers has lobbed a A$4 billion ($3.1billion) cash-and-scrip offer for Tabcorp’s bookmaking and media business.

BetMakers Technology Group Ltd on Friday intensified a three-way bidding war for Tabcorp Holdings Ltd’s wagering and media business, offering A$4 billion ($3.1 billion) for the struggling division.

The BetMakers proposal dwarfs separate A$3.5 billion ($2.69 billion) offers by British sports betting firm Entain and U.S.-based investment manager Apollo Management for the Tabcorp unit hit hard by the halt to sporting events and closure of betting shops due to the pandemic.

Tabcorp shares gained as much as 4.2% and scaled a near 3-1/2 year peak. BetMakers, though, slumped nearly 17% on news of the proposal, that will involve A$3 billion ($2.31 billion) in shares and A$1 billion ($0.77 billion) in cash, likely to be funded by debt.

The A$4 billion offer usurps the previous A$3.5 billion bids by British wagering giant Entain, owner of Tabcorp’s online rivals Ladbrokes and Neds, and private equity group Apollo.

“The potential acquisition of Tabcorp’s Wagering and Media business represents an exciting opportunity for BetMakers to deliver transformational growth and realise the value of these new assets in line with this strategy,” Betmakers CEO Todd Buckingham said.

“TAB and Sky Racing have a strong wagering brand, and we believe that BetMakers is uniquely positioned for an opportunity to grow and further enhance the business both in Australia and globally,” added Buckingham.

Tabcorp said it would assess the BetMakers’ offer in the context of a wider review announced in March that included the possibility of a demerger.

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