29th Mar 2021 05:57
(Alliance News) - Entain PLC was struck a blow on Monday after Australian gaming firm Tabcorp Holdings Ltd said it has rejected takeover offers for its Wagering & Media arm.
In February, the Ladbrokes Coral owner confirmed it was in the early stages of talks to acquire the Tabcorp unit. Entain, noting press speculation in Australia, said it has "made a non-binding indicative offer".
Tabcorp noted it has received proposals valuing its unit at AUD3 billion, about GBP1.66 billion.
"The Tabcorp board has carefully considering the proposals and formed the view that the proposals do not adequately value Tabcorp's Wagering & Media business," Tabcorp said.
After fighting off a takeover tilt by MGM Resorts International, the company has eyed a shopping spree of its own. In early-January, it made a GBP250 million offer for Baltic bookmaker Enlabs AB.
Also on Monday, Moody's Investors Service affirmed Entain's Ba2 corporate family rating but revised the outlook to stable.
The ratings agency said: "Moody's revised the company's outlook to negative in April 2020 because
of the pandemic-driven national lockdown in the UK and Europe which shut down the entire retail network. Despite these challenges the company's online gaming and sports betting segments successfully mitigated the losses from betting shops."
Moody's said the Ba2 rating is supported by Entain's size and position as one of the leading bookmakers in the UK, Germany, Australia, Italy and also the US - thanks to its BetMGM joint-venture.
"Moody's considers Entain's liquidity position to be good for its near-term needs which include a relatively low level of cash burn during the coronavirus shutdown," Moody's added.
By Eric Cunha; [email protected]
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