According to a report in The Australian newspaper, British bookmakers Ladbrokes Coral and William Hill are both interested in attaining the sports wagering arm of Australia’s Tatts Group.
A group of companies called the Pacific Consortium and led by London private equity firm Macquarie has made a A$7.3 billion—US$5.5 billion—bid for Tatts. The bid has thrown into question a $8.7 billion bid by Tabcorp to merge with Tatts, which was announced in October.
The consortium—comprising Macquarie, KKR, First State and Morgan Stanley Infrastructure—has said they want to split Tatts lotteries division from its sports wagering assets. The group is seen as being primarily interested in the lotteries division, which performs much better than Tatts wagering arms.
According to the paper, which cited unnamed sources, Tatts officials are considering both offers, but the Pacific Consortium’s bid has been weakened by the lack of a guaranteed price for Tatts wagering arm.
Both Ladbrokes Coral and William Hill have sought to expand their businesses into the Australian market. Tatts launched a retail and online betting brand UBET in Australia in 2015.
