Australia – Apollo Global Management makes it bid for TabcorpBy Phil - 7 May 2021
US investment manager Apollo Global Management has now outbid British betting company Entain in the race to buy Australian betting giant Tabcorp.
Apollo has put forward two bids one for AU$4bn to take both the Wagering & Media business and the Gaming Services business and one for AU$3.5bn just for the Wagering & Media business alone.
Tabcorp, who claims 44 per cent of Australia’s sports betting sector, said: “Tabcorp Holdings has received a revised unsolicited, nonbinding and indicative proposal from Apollo Management on behalf of affiliated investment funds. The revised proposal relates to a possible acquisition by Apollo of Tabcorp’s Wagering &
Media business and Gaming Services business for a combined value of A$4bn or alternatively, Tabcorp’s Wagering & Media business for a value of A$3.5bn.
“The revised 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 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.”
Tabcorp had previously received an offer from Entain in relation to a possible acquisition by Entain of Tabcorp’s Wagering & Media business for an enterprise value of A$3.5bn.