5th Jul 2021 11:47
(Alliance News) - Entain PLC on Monday noted that Tabcorp Holdings Ltd will pursue a demerger of its Lotteries & Keno business, leading to the creation of two Sydney-listed businesses, Lotteries & KenoCo and Wagering & GamingCo.
In February, Entain - the company behind Ladbrokes, Coral and Partypoker - confirmed it was in talks to acquire the wagering and media division of Australian firm Tabcorp.
However in late March, Tabcorp said it had received proposals valuing its unit at AUD3 billion, about GBP1.66 billion, and these were rejected on the grounds that they did not "adequately value" the business. In late April, Entain improved its offer to GBP1.95 billion.
Entain said in response to the demerger that it was disappointed by Tabcorp's decision, believing that its all-cash offer "would have delivered superior outcomes for shareholders, customers, employees and the wider industry".
"Entain's Australian business, comprising the Ladbrokes, Neds, Betstar and Bookmaker brands, continues to build on a record year in 2020. We are confident that it will go from strength to strength as it delivers innovative and highly engaging products for its customers as well as supporting the health of the wider Australian racing industry," Entain said Monday.
Shares in Entain were up 2.2% at 1,837.50 pence on Monday in London.
By Dayo Laniyan; [email protected]
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