SPORTS BETTING
Australia – BetMakers joins list of companies to make bids for Tabcorp
By Phil - 3 June 2021
The list of suitors to buy Tabcorp’s racing and wagering arm continues to grow with Australian betting company BetMakers Technology, throwing its name into the hat with a AU$4bn offer which if accepted would see Tabcorp receive AU$1bn in cash sourced through debt financing and another AU$3bn worth of newly issued BetMakers shares.
The number of new shares issued would be fixed at the time a transaction is agreed and priced at a 15% premium to the traded price of BetMakers prior to signing, the company said. Based on the 10-day volume weighted average price as of 26 May 2021, the Indicative Proposal would provide Tabcorp shareholders with a 65% interest in the combined BetMakers and Tabcorp Wagering and Media business.
Makers CEO Todd Buckingham said: “Over the past few years, BetMakers has been focussed on growing an international footprint to position itself as a world-leading data and technology products and services provider that can deliver commercial benefits for the two critical pillars of the racing world: racing bodies and wagering operators. 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.
“Building on BetMakers’ success to date, the Combined Entity would be a compelling investment proposition as one of the most broadly deployed global racing networks in the market. We are uniquely placed to pursue commercial opportunities globally, and in particular, in the United States.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.”
Tabcorp Chairman Steven Gregg added: “Tabcorp Holdings has received an unsolicited, non-binding and indicative proposal from BetMakers Technology Group in relation to a possible acquisition by BetMakers of Tabcorp’s Wagering and Media business. 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.”
The BetMakers bid follows on the back of bids from British sports betting firm Entain and one from Apollo Global Management.
