The A$11.3 billion merger between Tabcorp and Tatts group is now on track for completion by Christmas after the Supreme Court of Victoria approved the merger plans and Tatts announced that its shareholders have approved the merger.
Tatts said 98.6 percent of votes cast by Tatts shareholders were in favor of the resolution.
The deal will see Tatts shareholders hold 58 percent of the combined group, which will have pro-forma annual revenue of at least $5 billion and earnings before interest and tax, depreciation and amortization of $915 million, according to the Australian Financial Review.
The merger is scheduled to be implemented on December 22, 2017.
“The combination creates a world-class, diversified gambling entertainment group, with a large national footprint and a diverse suite of product offerings across wagering, media, lotteries, Keno and gaming services,” Tabcorp said in a press release.
The deal sees Tatts’ wagering brand Abet replaced with TABCORP’s TAB as the company’s retail operation. Tabcorp will also gain Tatts’ strong lotteries division, which had driven a 6.1 per cent increase in revenue for the first five months of the 2018 financial year and a 17.1 per cent increase in continuing operations net profit after tax in the same period, the Review reported.
