2nd Feb 2021 10:21
(Alliance News) - Ladbrokes Coral Entain PLC on Tuesday confirmed it is in the early stages of talks to acquire the wagering and media business from Australia's Tabcorp Holdings Ltd.
ASX-listed Tabcorp on Tuesday said it "has been approached in relation to a potential transaction" concerning its wagering and media arm.
Entain, noting press speculation in Australia, said it has "made a non-binding indicative offer".
The acquisition fits in with Entain's M&A strategy of growing across regulated markets, the company said.
"As such, this would present an opportunity to acquire an attractive business which, if combined with Entain's existing Australian business, would create a leading, integrated multi-channel and multi-brand wagering company," Entain added.
After fighting off takeover interest from a US partner, Entain has eyed making acquisitions of its own.
In January, it made a SEK2.80 billion, about GBP243.1 billion, takeover bid for Swedish bookmaker Enlabs AB.
A Texas-based hedge fund, however, said it did not support Entain's SEK40 per share Enlabs offer.
Also in January, MGM Resorts International said it will not be making a firm takeover offer for Entain, following a possible GBP8.1 billion bid made at the start of the year. Entain previously had rejected the MGM approach, saying it "significantly undervalues the company and its prospects".
Australia's Tabcorp meanwhile, on Tuesday said it was "assessing the proposals" in relation to a potential buyout of its wagering and media business.
The company did not name who made the proposal, adding it was "expressed to be confidential".
Back in November, Tabcorp said it had not received "any proposal in respect of the company or its businesses". This was in the wake of a piece published by newspaper The Australian which reported that private equity firms were mulling a break-up of the company.
On Tuesday, Tabcorp shares jumped 8.8% to AUD4.46, giving it a market capitalisation of around AUD9.89 billion, about GBP5.50 billion.
Entain shares were down 0.6% at 1,276.00 pence each in London on Tuesday morning.
By Eric Cunha; [email protected]
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