Australian betting giant Tabcorp has rejected recent investor proposals to acquire its Wagering & Media business, the company’s board deeming the offers as undervaluing the asset.
According to an ASX announcement last week, the company will now hold a strategic review of all ownership options that could see the Wagering & Media arm drawing a higher price. Rejected offers included one from U.K. gaming firm Entain PLC and U.S. media giant Fox Corporation. Tabcorp said the offers were all valued at around AU$3 billion (US$2.3 billion).
“The Tabcorp Board has carefully considered the proposals and formed the view that the proposals do not adequately value Tabcorp’s Wagering & Media business,” the company said, according to Inside Asian Gaming.
“Tabcorp has consequently decided to undertake a strategic review to assess and evaluate all structural and ownership options to maximize the value of Tabcorp’s businesses for the benefit of shareholders.
“These options could include a potential sale of the Wagering & Media business to a third party or a potential demerger, which could be implemented via a separation of the Wagering & Media business or the Lotteries & Keno business. As part of this process, Tabcorp is also resuming its strategic review of the Gaming Services business.”
