Four investors have formed the Pacific Consortium and offered to pay A.3 billion–.5 billion U.S.—to acquire Australian lottery operator Tatts Group, according to a filing to the Australian Stock Exchange.
The group includes State Superannuation Scheme, Morgan Stanley Infrastructure Inc., which is an adviser to and manager of North Haven Infrastructure Partners II LP, an affiliate of Kohlberg Kravis Roberts & Co L.P. and Macquarie Corporate Holdings Pty Limited, according to Reuters.
The new bid comes after Tabcorp reported an A$11.3 billion ($8.7 billion) merger with Tatts Group in October. Reports say the new bid is an improvement on that deal and is being backed by some Tatts Group investors, according to Reuters.
The new bid values Tatts shares at $4.40 to $5, compared to $4.34 a share offer from Tabcorp.
The Pacific Consortium bid specifically offers A$3.40 per share cash for the lotteries business and shares in a spinoff wagering company the consortium values at A$1 to A$1.60 a share, according to the filing. The bid is for Tatts groups lottery business, while the Tabcorp bid seeks to acquire the entire company, reports said.
In a press statement, Tatts Group said it “has not yet formed a view on how the Indicated Proposal compares to the Proposed Tabcorp Merger.”
“The Tatts board and its advisers will assess the indicative proposal including its terms, underlying financial assumptions and conditions, and will provide a further update on the outcome of that review as soon as practicable,” the statement said. “In the meantime, the directors of Tatts continue to believe the proposed Tabcorp merger is in the best interests of Tatts shareholders and unanimously recommend the proposed Tabcorp merger, in the absence of a superior proposal and subject to an independent expert concluding the proposed Tabcorp merger is in the best interests of Tatts shareholders.”
Tabcorp officials said they remain committed to completing the Tatts deal in their own statement.
